Dedicated to Deposits: Deals, Data, and Discussion

Regulators Close Seven Banks in Seven States

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The FDIC had another busy Friday with 7 bank closures in 7 states. This brings the total number of bank failures in 2010 to 103. All of the banks were small with assets ranging from $32.6 million to $1.01 billion.

The FDIC was able to find buyers for all 7 failed banks, and all deposits (except some brokered deposits) were assumed by the acquiring banks including deposits above the FDIC limit.

For the last two years the FDIC has made it a policy to find buyers which assume all deposits of failed banks. Before that time it was common for the buyer to only assume the insured deposits. In those cases, many depositors lost some or all of their uninsured deposits when the banks failed. The most notorious example was when IndyMac Bank failed.

Those who lost uninsured deposits in 2008 learned this week that they will soon be receiving checks from the FDIC. One provision in the financial reform bill that was signed into law this week by the President not only permanently raised the maximum deposit insurance amount to $250,000. It also made this increase retroactive to January 1, 2008. As the FDIC reported, there were 6 banks that failed in 2008 in which uninsured deposits were lost. In those cases, the buyers only assumed the insured deposits. Since 2008, the rare cases in which uninsured deposits were lost have been due to the FDIC not being able to find a buyer. So it's still a good idea to stay below the FDIC limit. At least with the $250K standard limit being permanent, it's now easier to stay under the limit.

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:

97th Bank Failure of 2010 (18th in Florida)

  • FDIC Press Release
  • Closed Bank: Sterling Bank, Lantana, FL
  • Size: 6 branches, $407.9 million in assets, $372.4 million in deposits
  • Acquiring Bank: IBERIABANK, Lafayette, LA
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co deposits, have been assumed by IBERIABANK
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $45.5 million
  • Enforcement Action: Federal Reserve 6/5/09 Written Agreement, 6/10/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

98th Bank Failure of 2010 (10th in Georgia)

  • FDIC Press Release
  • Closed Bank: Crescent Bank and Trust Company, Jasper, GA
  • Size: 11 branches, $1.01 billion in assets, $965.7 million in deposits
  • Acquiring Bank: Renasant Bank, Tupelo, MS
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co deposits, have been assumed by Renasant Bank
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $242.4 million
  • Enforcement Action: FDIC 5/11/09 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

99th Bank Failure of 2010 (4th in South Carolina)

  • FDIC Press Release, OCC Press Release
  • Closed Bank: Williamsburg First National Bank, Kingstree, SC
  • Size: 5 branches, $139.3 million in assets, $134.3 million in deposits
  • Acquiring Bank: First Citizens Bank and Trust Company, Inc., Columbia, SC
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co. deposits, have been assumed by First Citizens Bank and Trust Company
  • Rate Changes: There are no immediate changes to accounts, rates or fees (First Citizens FAQ)
  • Estimated Cost to Deposit Insurance Fund: $8.8 million
  • Enforcement Action: OCC 10/22/09 Formal Agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

100th Bank Failure of 2010 (1st in Kansas)

  • FDIC Press Release
  • Closed Bank: Thunder Bank, Sylvan Grove, KS
  • Size: 2 branches, $32.6 million in assets, $28.5 million in deposits
  • Acquiring Bank: The Bennington State Bank, Salina, KS
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co deposits, have been assumed by The Bennington State Bank
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $4.5 million
  • Enforcement Action: Federal Reserve 3/16/09 Written Agreement, 6/21/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

101st Bank Failure of 2010 (7th in Minnesota)

  • FDIC Press Release
  • Closed Bank: Community Security Bank, New Prague, MN
  • Size: 1 branch, $108.0 million in assets, $99.7 million in deposits
  • Acquiring Bank: Roundbank, Waseca, MN
  • Possible Uninsured Deposits: All deposit accounts, including brokered deposits, have been assumed by Roundbank
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $18.6 million
  • Enforcement Action: FDIC 8/3/09 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

102nd Bank Failure of 2010 (4th in Nevada)

  • FDIC Press Release
  • Closed Bank: SouthwestUSA Bank, Las Vegas, NV
  • Size: 1 branch, $214.0 million in assets, $186.7 million in deposits
  • Acquiring Bank: Plaza Bank, Irvine, CA
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co deposits, have been assumed by Plaza Bank
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $74.1 million
  • Enforcement Action: FDIC 3/3/10 Consent Order, 5/7/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

103rd Bank Failure of 2010 (2nd in Oregon)

  • FDIC Press Release
  • Closed Bank: Home Valley Bank, Cave Junction, OR
  • Size: 5 branches, $251.8 million in assets, $229.6 million in deposits
  • Acquiring Bank: South Valley Bank & Trust, Klamath Falls, OR
  • Possible Uninsured Deposits: All deposit accounts have been assumed by South Valley Bank & Trust
  • Rate Changes: Rates will be reviewed and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $37.1 million
  • Enforcement Action: Federal Reserve 11/19/09 Written Agreement, 7/6/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

The above ratings are based on 3/31/2010 data.

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Comment #1 by 17.475 percent (anonymous) posted on
17.475 percent
ah the sunshine state what a place to live

3