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Four Banks Fail Including Midwest Bank and Trust Company in Illinois

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The number of failed banks for 2010 grew to 72 today. Four banks failed in Georgia, Michigan, Missouri and Illinois. All were small except for Midwest Bank and Trust Company in Illinois. It had 23 branches and $3.17 billion in assets. One unique aspect of Midwest Bank was that it was a recipient of $85 million from TARP. So its failure will likely cost taxpayers. The FDIC had an easy time finding a buyer. According to this Daily Herald article the FDIC received 18 bids on Midwest. The winning bid came from Firstmerit Bank, N.A. in Ohio which will be assuming all deposits from Midwest including all brokered deposits.

The other three banks that failed today were all small banks. Like the case of Midwest Bank, the FDIC was able to find buyers for these banks, and all deposits were assumed by the acquiring banks. One of the failed banks, Satilla Community Bank, was based in Georgia. This ended Georgia's 7-week streak of being free of bank failures. This brings the total number of 2010 bank failures in Georgia to 8. Last year Georgia led the nation with the most failed banks (25). Illinois was next at 21. Illinois currently is ahead of Georgia with 11 failures for 2010.

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.

There were no credit union liquidations this week. The total number of failed credit unions so far this year remains at 7.

Below is a summary of today's bank failures:

69th Bank Failure of 2010 (8th in GA)

  • FDIC Press Release
  • Closed Bank: Satilla Community Bank, Saint Marys, GA
  • Size: 1 branch, $135.7 million in assets, $134.0 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Ameris Bank, Moultrie, GA
  • Rate Changes: Ameris Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $31.3 million
  • Enforcement Action: FDIC 6/30/09 Cease & Desist Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

70th Bank Failure of 2010 (3rd in MI)

  • FDIC Press Release
  • Closed Bank: New Liberty Bank, Plymouth, MI
  • Size: 1 branch, $109.1 million in assets, $101.8 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred, excluding the Cede & Co. brokered deposits
  • Acquiring Bank: Bank of Ann Arbor, Ann Arbor, MI
  • Rate Changes: Bank of Ann Arbor will review rates
  • Estimated Cost to Deposit Insurance Fund: $25.0 million
  • Enforcement Action: FDIC 6/17/09 Cease & Desist Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

71st Bank Failure of 2010 (4th in MO)

  • FDIC Press Release
  • Closed Bank: Southwest Community Bank, Springfield, MO
  • Size: 1 branch, $96.6 million in assets, $102.5 million in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred
  • Acquiring Bank: Simmons First National Bank, Pine Bluff, AR
  • Rate Changes: Simmons First National Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $29.0 million
  • Enforcement Action: None
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

72nd Bank Failure of 2010 (11th in IL)

  • FDIC Press Release
  • Closed Bank: Midwest Bank and Trust Company, Elmwood Park, IL
  • Size: 23 branches, $3.17 billion in assets, $2.42 billion in deposits
  • Possible Uninsured Deposits: all deposit accounts transferred
  • Acquiring Bank: Firstmerit Bank, N.A., Akron, OH
  • Rate Changes: FirstMerit Bank, NA will review rates
  • Estimated Cost to Deposit Insurance Fund: $216.4 million
  • Enforcement Action: Federal Reserve 12/18/09 written agreement, 3/30/10 prompt corrective action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

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

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