Dedicated to Deposits: Deals, Data, and Discussion

Three Banks Failed in FL, GA & NM - Total for Year at 86

POSTED ON BY

Three banks were closed today by regulators which brings the total number of bank failures this year to 86. At this time last year, there had been a total of 45 banks that had failed for the year. The pace of bank failures may seem to be increasing, but June broke that trend. There were 8 banks that failed in June. That's much less than the last 3 months when 14 failed in May, 23 in April and 19 in March. Perhaps the peak of bank failures is behind us.

The bank failures occurred in Florida, Georgia and New Mexico. This was Georgia's 9th bank failure of 2010. That's the same number of failures Georgia had at this time last year. By the end of 2009, the number of bank failures in Georgia reached 25 for the year. In Florida, the pace of bank failures has increased substantially since last year. The number of 2010 Florida bank failures is up to 14 which is the total number of banks that failed in Florida for all of 2009.

For all three of today's bank failures, the FDIC was able to arrange for another bank to assume all deposits. So no depositors will lose any money. This has been common in the last two years. Every now and then the FDIC can't find a buyer, and in those cases depositors with uninsured deposits may lose their money.

In this financial crisis period, the worst case of depositors losing their uninsured deposits was IndyMac's failure in July 2008. Depositors only got back half of their uninsured deposits. That may soon change. The financial overhaul bill that passed the conference committee today and is expected to be passed by the Senate and House next week includes a provision to permanently increase the federal deposit insurance for banks and credit unions to $250,000, and this is retroactive to January 1, 2008.

There were no credit union liquidations this week. However, one credit union was placed into conservatorship. Arrowhead Central Credit Union in Bernardino, California was placed into conservatorship. The NCUA will manage the credit union with hopes that it can either be merged with another credit union or brought back to a healthy financial condition. However, liquidation is also a possibility.

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

84th Bank Failure of 2010 (14th in FL)

  • FDIC Press Release
  • Closed Bank: Peninsula Bank, Englewood, FL
  • Size: 13 branches, $644.3 million in assets, $580.1 million in deposits
  • Acquiring Bank: Premier American Bank, Miami, FL
  • Possible Uninsured Deposits: Premier American Bank assumed all of the deposits
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $194.8 million
  • Enforcement Action: FDIC 11/20/09 Consent Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

85th Bank Failure of 2010 (9th in GA)

  • FDIC Press Release
  • Closed Bank: First National Bank, Savannah, GA
  • Size: 4 branches, $252.5 million in assets, $231.9 million in deposits
  • Acquiring Bank: The Savannah Bank, N.A., Savannah, GA
  • Possible Uninsured Deposits:The Savannah Bank assumed all of the deposits
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $68.9 million
  • Enforcement Action: OCC 11/17/09 Formal Agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

86th Bank Failure of 2010 (2nd in NM)

  • FDIC Press Release
  • Closed Bank: High Desert State Bank, Albuquerque, NM
  • Size: 2 branches, $80.3 million in assets, $81.0 million in deposits
  • Acquiring Bank: First American Bank, Artesia, NM
  • Possible Uninsured Deposits: First American Bank assumed all of the deposits
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $20.9 million
  • Enforcement Action: FDIC 6/22/09 C&D Order, FDIC 2/03/10 Prompt Correction Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

Credit Union Placed into NCUA Conservatorship

  • NCUA Press Release
  • Credit Union: Arrowhead Central Credit Union, San Bernardino, CA
  • Size: $876 million in assets and served 152,000 members
  • Financial Ratings: 2 stars at Bankrate.com, 0 star (lowest) at BauerFinancial

BauerFinancial ratings are based on 3/31/10 data. Bankrate ratings are based on 12/31/09 data.

References:



Related Posts

Comments
3 Comments.
Comment #1 by Anonymous posted on
Anonymous
Who knows if it's a broken trend or just a slowdown caused by many bank regulators taking their vacations during June.  I assume it takes a lot of personnel from the FDIC to do the analyses of shaky banks and then make the preparations to fly into town and march into the bank branches on a Friday evening, in order to close them.

0
Comment #2 by umair (anonymous) posted on
umair
This post is really nice. Few months back I applied for an unsecured loan on a website and they provided that loan to me shortly with a lower rate of interest. They have an special offer for bad credit people. They provide loan for bad credit people also.

-7
Comment #4 by cookies and grape juice (anonymous) posted on
cookies and grape juice
florida 16.28% georgia 10.47% illinois bout 13 %?  glad i do not live in any of those states  12 thumbs up

-3