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Four Bank Failures in MD, NY and OK - Total for Year at 90

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After a holiday break from closures last Friday, the FDIC and other federal regulators are back with their busy Fridays. Four small banks failed today with two in Maryland, one in New York and one in Oklahoma. This brings the total number of bank failures for this year to 90.

The FDIC wasn't able to find a buyer for one of the four banks. Depositors who had over the FDIC limit will likely lose their uninsured deposits. For the other three, the FDIC arranged for other banks to assume all deposits even for deposits above the FDIC limit.

The bank that didn't have a buyer was an interesting case. The failed bank was Ideal Federal Savings Bank of Baltimore, Maryland. According to the Office of Thrift Supervision:

The minority-owned institution opened on April 4, 1920, as Ideal Savings and Loan Association. It had total assets of $6.3 million, retail deposits of $5.8 million, one office and two employees.

Now that's a tiny bank! The FDIC was able to arrange for a branch at M&T Bank to temporarily hold the deposits so Ideal's bank customers will have access to their insured deposits until July 24th. After July 24, the FDIC will be mailing checks.

There were no credit union liquidations this week. So far this year there have been 10 credit union liquidations.

Below is a summary of today's bank failures:

87th Bank Failure of 2010 (2nd in MD)

  • FDIC Press Release, OCC Press Release
  • Closed Bank: Bay National Bank, Baltimore, MD
  • Size: 2 branches, $282.2 million in assets, $276.1 million in deposits
  • Acquiring Bank: Bay Bank, FSB, Lutherville, MD (new entity)
  • Possible Uninsured Deposits: Bay Bank, FSB assumed all of the deposits
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $17.4 million
  • Enforcement Action: OCC 2/6/09 Consent Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

88th Bank Failure of 2010 (3rd in MD)

  • FDIC Press Release, OTS Press Release
  • Closed Bank: Ideal Federal Savings Bank
  • Size: 1 branch, $6.3 million in assets, $5.8 million in deposits
  • Acquiring Bank: None, M&T Bank will temporarily hold insured deposits
  • Possible Uninsured Deposits: FDIC did not provide estimate
  • Rate Changes: N/A
  • Estimated Cost to Deposit Insurance Fund: $2.1 million
  • Enforcement Action: OTS 8/22/08 C&D Order, OTS 3/5/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

89th Bank Failure of 2010 (3rd in NY)

  • FDIC Press Release
  • Closed Bank: USA Bank, Port Chester, NY
  • Size: 1 branch, $193.3 million in assets, $189.9 million in deposits
  • Acquiring Bank: New Century Bank, Phoenixville, PA
  • Possible Uninsured Deposits: New Century Bank assumed all of the deposits
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $61.7 million
  • Enforcement Action: FDIC 10/22/07 C&D Order, FDIC 12/8/09 Prompt Correction Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

90th Bank Failure of 2010 (1st in OK)

  • FDIC Press Release, OCC Press Release
  • Closed Bank: Home National Bank, Blackwell, OK
  • Size: 15 branches, $644.5 million in assets, $560.7 million in deposits
  • Acquiring Bank: RCB Bank, Claremore, OK
  • Possible Uninsured Deposits: RCB Bank assumed all of the deposits
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $78.7 million
  • Enforcement Action: OCC 6/18/08 Formal Agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

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

References:



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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
I notice that in the FDIC information for  Ideal FSB that they have something new:

They have a link to a site where you can select a failed bank and enter the account number to find out if it is fully insured.  (How I wish there were such a thing for non-failed banks!)  I bet this could have prevented a lot of the mass hysteia that occurred after IndyMac failed.

2
Comment #2 by scottj posted on
scottj
FDIC does have a good tool to see if you are fully insured. As long as you put accounts in correctly and make sure bank has things properly titled it is a great tool

https://www.fdic.gov/edie/index.html

2