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8 Friday Bank Failures Including Butler Bank, City Bank and Riverside National Bank

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Friday was an especially busy day for the FDIC with 8 bank closures. That's the most since October 30, 2009 when 9 banks failed on one day. The first bank to close was Lakeside Community Bank in Michigan. The FDIC couldn't find a buyer, so checks are being mailed on Monday. For the other 7 failures, the FDIC was able to find buyers which agreed to assume all deposits.

One of the 8 failed banks was Butler Bank based in Massachusetts. Massachusetts was one of the 14 states which had been free of bank failures since before 2003. Two weeks ago I reviewed the 14 states which had lacked recent bank failures. Last week South Carolina was removed from the list when Beach First National Bank failed.

Another note regarding Butler Bank is that it had been offering a high-yield reward checking account since 2007. At the time of closure the account was still paying a competitive 3.00% APY for balances up to $40K. We'll have to wait and see if the acquiring bank, People's United Bank, will continue this reward checking account.

There were no credit union closures this week. The total for the year remains at 5 which is 1/10th of the total number of bank failures

Finally, all 8 banks were operating under public enforcement actions. Calculated Risk Blog has updated its unofficial problem bank list which lists all banks that are operating under some type of public enforcement action.

Below is a summary of today's bank failures:

43rd Bank Failure of 2010 (1st in MI)

  • FDIC Press Release
  • Closed Bank: Lakeside Community Bank, Sterling Heights, Mi
  • Size: 1 branch, $53.0 in assets, $52.3 million in deposits
  • Possible Uninsured Deposits: Not disclosed by FDIC
  • Acquiring Bank: None, checks being mailed by the FDIC
  • Rate Changes: N/A
  • Estimated Cost to Deposit Insurance Fund: $11.2 million
  • Enforcement Action: 11/18/09 FDIC Consent Order
  • Financial Ratings: NR (not rated) at Bankrate.com, 0 star (lowest) at BauerFinancial

44th Bank Failure of 2010 (7th in FL)

  • FDIC Press Release
  • Closed Bank: First Federal Bank of North Florida, Palatka
  • Size: 8 branches, $393.3 million in assets, $324.2 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: TD Bank, N.A.
  • Rate Changes: TD Bank, N.A. will review rates
  • Estimated Cost to Deposit Insurance Fund: $6.0 million
  • Enforcement Action: 11/13/09 OTS C&D Order, 3/1/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

45th Bank Failure of 2010 (8th in FL)

  • FDIC Press Release
  • Closed Bank: AmericanFirst Bank, Clermont, FL
  • Size: 3 branches, $90.5 million in assets, $81.9 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: TD Bank, N.A.
  • Rate Changes: TD Bank, N.A. will review rates
  • Estimated Cost to Deposit Insurance Fund: $10.5 million
  • Enforcement Action: 2/5/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

46th Bank Failure of 2010 (9th in FL)

  • FDIC Press Release
  • Closed Bank: Riverside National Bank of Florida, Fort Pierce
  • Size: 61 branches, $3.42 billion in assets, $2.76 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: TD Bank, N.A.
  • Rate Changes: TD Bank, N.A. will review rates
  • Estimated Cost to Deposit Insurance Fund: $491.8 million
  • Enforcement Action: 11/10/09 OCC Consent Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

47th Bank Failure of 2010 (1st in MA)

  • FDIC Press Release
  • Closed Bank: Butler Bank, Lowell, MA
  • Size: 4 branches, $268.0 million in assets, $233.2 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: People's United Bank, Bridgeport, CT
  • Rate Changes: People's United Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $22.9 million
  • Enforcement Action: 4/17/09 FDIC C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

48th Bank Failure of 2010 (3rd in CA)

  • FDIC Press Release
  • Closed Bank: Innovative Bank, Oakland, CA
  • Size: 4 branches, $268.9 million in assets, $225.2 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Center Bank, Los Angeles, CA
  • Rate Changes: Center Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $37.8 million
  • Enforcement Action: 4/27/2007 FDIC C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

49th Bank Failure of 2010 (4th in CA)

  • FDIC Press Release
  • Closed Bank: Tamalpais Bank, San Rafael, CA
  • Size: 7 branches, $628.9 million in assets, $487.6 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Union Bank, N.A., San Francisco, CA
  • Rate Changes: Union Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $81.1 million
  • Enforcement Action: 9/15/09 FDIC C&D Order, 2/19/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

50th Bank Failure of 2010 (5th in WA)

  • FDIC Press Release
  • Closed Bank: City Bank, Lynnwood, WA
  • Size: 8 branches, $1.13 billion in assets, $1.02 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Whidbey Island Bank, Coupeville, WA
  • Rate Changes: Whidbey Island Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $323.4 million
  • Enforcement Action: 6/29/09 FDIC C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

The above Bankrate ratings are based on 9/30/09 data. BauerFinancial Ratings are based on 12/31/09 data.

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1 Comments.


Comment #2 by KenBDG posted on
KenBDG
Yes, it has been three weeks without a Georgia bank failure. Seems like we're seeing more failures now in new states.

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