Dedicated to Deposits: Deals, Data, and Discussion

Four Bank Failures in FL, MN, AZ & CA

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Four small banks failed today. That brings the total number of failures for 2010 to 68. That's more than twice the number of failures as last year at this time (33). So if that pace continues, we'll be at 288 by the end of the year.

Today's failed banks were much smaller than the ones that failed last Friday. The total estimated cost to the FDIC's Deposit Insurance Fund (DIF) was only $213.7 million. The cost to the DIF last Friday was 34x higher at $7.33 billion.

The FDIC was able to find buyers for all 4 of the failed banks. All deposits (except some brokered deposits) were assumed by the acquiring banks. As is typical, the FDIC didn't give any indication if the acquiring banks were going to honor rates on existing CDs. If you learn what any of these banks decide, please leave a comment.

In addition to the four bank failures, there was one credit union liquidation that I just missed for my last bank failure summary. The NCUA issued the press release on May 1st. The closed credit union was St. Paul's Croatian FCU in Eastlake, Ohio. The NCUA had just placed this credit union in conservatorship on April 23rd. I've never seen the NCUA liquidate a credit union this fast after conservatorship. They must have found that the credit union was in really bad shape. That may also explain why the NCUA didn't find another credit union to assume the deposits. The NCUA is shutting the credit union down and mailing checks of insured deposits to the members. With 5400 members and assets of about $238.8 million, it's likely that some members are over the insurance limit. As is typical, the NCUA didn't mention if there were any potentially uninsured deposits.

Below is a summary of today's bank and credit union failures:

65th Bank Failure of 2010 (10th in FL)

  • FDIC Press Release
  • Closed Bank: The Bank of Bonifay, Bonifay, FL
  • Size: 5 branches, $242.9 million in assets, $230.2 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred
  • Acquiring Bank: First Federal Bank of Florida, Lake City, FL
  • Rate Changes: First Federal Bank of Florida will review rates
  • Estimated Cost to Deposit Insurance Fund: $78.7 million
  • Enforcement Action: FDIC 3/23/09 Cease & Desist Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

66th Bank Failure of 2010 (5th in MN)

  • FDIC Press Release
  • Closed Bank: Access Bank, Champlin, MN
  • Size: 2 branches, $32.0 million in assets, $32.0 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred
  • Acquiring Bank: PrinsBank, Prinsburg, MN
  • Rate Changes: PrinsBank will review rates
  • Estimated Cost to Deposit Insurance Fund: $5.5 million
  • Enforcement Action: FDIC 10/22/09 Cease & Desist Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

67th Bank Failure of 2010 (2nd in AZ)

  • FDIC Press Release
  • Closed Bank: Towne Bank of Arizona, Mesa, AZ
  • Size: 1 branch, $120.2 million in assets, $113.2 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Commerce Bank of Arizona, Tucson, AZ
  • Rate Changes: Commerce Bank of Arizona will review rates (per Commerce's FAQs, they will notify depositors in 7 days)
  • Estimated Cost to Deposit Insurance Fund: $41.8 million
  • Enforcement Action: FDIC 3/28/08 Cease & Desist Order
  • Financial Ratings: NR (no rating) at Bankrate.com, 0 star (lowest) at BauerFinancial

68th Bank Failure of 2010 (5th in CA)

  • FDIC Press Release
  • Closed Bank: 1st Pacific Bank of California, San Diego, CA
  • Size: 6 branches, $335.8 million in assets, $291.2 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: City National Bank, Los Angeles, CA
  • Rate Changes: City National Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $87.7 million
  • Enforcement Action: Federal Reserve 12/10/09 written agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

7th Credit Union Liquidation of 2010 (closed on May 1st)

  • NCUA Press Release
  • Liquidated CU: St. Paul's Croatian FCU, Eastlake, OH
  • Size: $238.8 million in assets and served 5,400 members
  • Acquiring CU: None, checks being mailed
  • Financial Ratings: ? stars at Bankrate.com, ? stars at BauerFinancial

The above ratings are based on 12/31/09 data.

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