Dedicated to Deposits: Deals, Data, and Discussion

Four Banks Failed Today: 2 in GA, 1 in FL & 1 in AZ

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Four small banks failed today: two in Georgia, one in Florida and one in Arizona. This brings the total number of bank failures for the year to 41. As a comparison, last year at this time there was a total of 21 bank failures.

The FDIC was able to find buyers for all four banks, and as is typical these days, the buyers agreed to assume all deposits (except brokered deposits) including deposits over the FDIC limit. The only depositors who may be concerned are CD holders. The buyers have the option to reduce rates on existing CDs. However, if they do lower the rates, they have to allow a penalty-free early withdrawal. Three of the four banks have stated that they'll be reviewing the rates. Bank of the Ozarks which acquired Unity National Bank in Georgia has stated that "rates on certain CD accounts and IRA accounts will be adjusted to current market rates (see bank's FAQs).

Two of today's buyers have been acquiring banks that have failed recently. Centennial Bank in Arkansas had acquired Old Southern Bank in Orlando, Florida on March 12th. Today Centennial acquired Key West Bank in Key West, Florida. New York Community Bank (NYCB) acquired AmTrust when it failed on December 4, 2009. This added 66 branches in Arizona, Florida, and Ohio. Today, NYCB acquired the 6 branches of Desert Hills Bank in Phoenix, AZ.

In Georgia, CharterBank acquired McIntosh Commercial Bank. One interesting thing to note regarding CharterBank is that it's one of the few banks in the nation that is still offering a 5% reward checking account (see review).

Earlier today the FDIC released February's Enforcement Actions. There were 36 cease and desist consent orders and five prompt corrective actions. Most banks that fail were operating under some enforcement action. However, this is not always the case. There was one bank that failed today that wasn't operating under a public enforcement action.

There were no credit union failures today so the total number of credit union liquidations for this year remains at four.

Below is a summary of today's bank failures:

38th Bank Failure of 2010 (6th in GA)

  • FDIC Press Release
  • Closed Bank: McIntosh Commercial Bank, Carrollton, GA
  • Size: 4 branches, $362.9 million in assets, $343.3 million in deposits
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. brokered deposits have been transferred
  • Acquiring Bank: CharterBank, West Point, GA
  • Rate Changes: CharterBank will review rates
  • Estimated Cost to Deposit Insurance Fund: $123.3 million
  • Enforcement Action: None
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

39th Bank Failure of 2010 (6th in FL)

  • FDIC Press Release
  • Closed Bank: Key West Bank, Key West, FL
  • Size: 1 branch, $88.0 million in assets, $67.7 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Centennial Bank, Conway, AR
  • Rate Changes: Centennial Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $23.1 million
  • Enforcement Action: 11/12/09 OTS C&D, 2/22/10 PCA
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

40th Bank Failure of 2010 (7th in GA)

  • FDIC Press Release
  • Closed Bank: Unity National Bank, Cartersville, GA
  • Size: 5 branches, $292.2 million in assets, $264.3 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Bank of the Ozarks, Little Rock, AR
  • Rate Changes: Rates on certain CD accounts and IRA accounts will be adjusted to current market rates (see FAQ)
  • Estimated Cost to Deposit Insurance Fund: $67.2 million
  • Enforcement Action: 2/03/09 OCC Formal Agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

41st Bank Failure of 2010 (1st in AZ)

  • FDIC Press Release
  • Closed Bank: Desert Hills Bank, Phoenix, AZ
  • Size: 6 branches, $496.6 million in assets, $426.5 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: New York Community Bank, Westbury, NY
  • Rate Changes: New York Community Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $106.7 million
  • Enforcement Action: 7/02/09 FDIC C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

References:


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Comments
2 comments.


Comment #2 by Anony (anonymous) posted on
Anony
KEEP UP THE GOOD WORK GEORGIA ONLY 3 MONTHS AND LEAD THE NATION IN FAILURES AT 17.5 PERCENT AMONG OTHER REASONS I GUESS IS THAT THE NEPOSITIOSIM THAT WAS A PROBLEM LAST YEAR CONTINUES

-2