Dedicated to Deposits: Deals, Data, and Discussion

Two Banks and One Credit Union Were Closed Today

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Two banks failed today. The closures were in Nevada and Washington State. For both cases, the FDIC was able to find buyers which agreed to assume all deposits. The only concern will be for those who have CDs at these closed banks. The acquiring banks haven't stated if they will honor the CD rates. They have the right to reduce the rates, but if they do, customers will have the right to make a penalty-free withdrawal.

The Washington State bank that failed was Rainier Pacific Bank. I had reported on this bank's online money market account that used to have a competitive yield. However, the rate fell way down to 0.50% last May. The FDIC was able to arrange for Umpqua Bank to assume all deposits.

There were two credit union failures this week: one today and one yesterday. The total number of credit union failures this year is 3. Both credit unions that were liquidated this week were tiny with assets under $10 million. For both closures, the NCUA was able to find buyers which agreed to assume all deposits.

Below is a summary of today's bank failures:

21st Bank Failure of 2010 (1st NV)

  • FDIC Press Release
  • Closed Bank: Carson River Community Bank, Carson City, NV
  • Size: 1 branch, $51.1 in assets, $50.0 million in deposits
  • Possible Uninsured Deposits: all deposits, excluding the Cede & Co. brokered deposits, have been transferred
  • Acquiring Bank: Heritage Bank of Nevada, Reno, NV
  • Rate Changes: Heritage Bank of Nevada will review rates
  • Estimated Cost to Deposit Insurance Fund: $7.9 million
  • Enforcement Action: FDIC 4/3/09 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

22nd Bank Failure of 2010 (4th in WA)

  • FDIC Press Release
  • Closed Bank: Rainier Pacific Bank, Tacoma, WA
  • Size: 14 branches, $717.8 million in assets, $446.2 million in deposits
  • Possible Uninsured Deposits: All deposits, excluding the Cede & Co. brokered deposits, have been transferred
  • Acquiring Bank: Umpqua Bank, Roseburg, OR
  • Rate Changes: Umpqua Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $95.2 million
  • Enforcement Action: FDIC 9/30/09 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

References:



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Comments
6 Comments.
Comment #1 by Anonymous posted on
Anonymous
Could you name the Credit Unions which failed please?  Also, the two links:  "one today" and "one yesterday" appear to be broken, I get a 404 file or directory not found error when I click them.  thank you.

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Comment #2 by Anonymous posted on
Anonymous
The NCUA site is down for maintenance

2
Comment #3 by KenBDG posted on
KenBDG
The links are to the NCUA website which is temporarily down as of 1:40pm CT.

1
Comment #4 by Anonymous posted on
Anonymous
 

The National Credit Union Administration (NCUA) on February 25 liquidated Friendship Community Federal Credit Union of Clarksdale, Mississippi, and accepted Shreveport Federal Credit Union's offer to purchase and assume the credit union.

Shreveport Federal Credit Union purchased and assumed Friendship Community Federal Credit Union's assets, loans and shares, enabling Friendship Community members to continue to receive uninterrupted credit union service. Friendship Community Federal Credit Union's declining financial condition led to its closure and subsequent purchase and assumption by Shreveport Federal Credit Union. At closure, Friendship Community Federal Credit Union had $861,696 in assets and served 685 members.

Shreveport Federal Credit Union is a full service credit union and its new members will have access to a broad array of financial services offered throughout the United States. With assets of $76 million, Shreveport Federal Credit Union serves approximately 14,500 members located throughout the country. The credit union has four branch locations in Louisiana, will maintain an office in Clarksdale, Mississippi, and also serves its members through nearly 4,000 shared service locations nationwide.

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Comment #5 by Anonymous posted on
Anonymous
The NCUA liquidated Mutual Diversified Employees FCU of Santa Ana, California, and accepted SchoolsFirst Federal Credit Union's offer to purchase and assume the credit union.

SchoolsFirst Federal Credit Union purchased and assumed Mutual Diversified Employees Federal Credit Union's assets, loans and shares, enabling its members to continue to receive uninterrupted credit union service. Mutual Diversified's declining financial condition led to its closure and subsequent purchase and assumption. At closure, Mutual Diversified Employees Federal Credit Union had $6.1 million in assets and served 748 members.

SchoolsFirst Federal Credit Union of Santa Ana, California, is a full service credit union and its members have access to a broad array of financial services. With assets of $8 billion, SchoolsFirst Federal Credit Union serves approximately 433,521 members through 27 branch locations and 6 express centers in Southern California.

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Comment #6 by Anonymous posted on
Anonymous
Is there a list of troubled credit unions like there is a list of troubled banks? I am a member of Tri-co Credit Union in NJ and ratings don't look very good...any insight?

Thanks!

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