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Eight Banks Including ShoreBank Were Closed by Regulators

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Eight Banks Including ShoreBank Were Closed by Regulators

After two slow Fridays for the FDIC, this one was busy with eight bank failures. That brings this year's total number of bank failures to 118. Two were in Florida, one was in Illinois and four were in California.

The largest failure was Chicago-based ShoreBank which had $2.16 billion in assets. Several readers will likely recognize ShoreBank. It had been offering an online savings account for last few years. The yield was slashed in January of 2010, possibly to comply with the FDIC rate caps for less than well capitalized banks. According to Chicago Tribune article:

Its deposits and most of its assets were acquired by a consortium of major U.S. financial institutions and philanthropic groups and will reopen under the name Urban Partnership Bank.

The major investors include Bank of America, American Express, Citigroup, PNC and Wells Fargo.

For all eight bank failures, the FDIC was able to find a buyer and each buyer agreed to assume all regular deposits. For all these closures, the FDIC just had its standard notes about CD interest rates:

Interest on deposits accrued through close of business the day the bank was closed will be paid at your same rate. Current rates will be reviewed by the acquiring institution and may be lowered; however, you may withdraw funds from any transferred account without early withdrawal penalty until you renew your Certificate of Deposit.

The acquiring banks sometimes mention on their websites if they intend to honor existing CD rates. I didn't have time to review the banks' websites. If you find additional info, please leave a comment.

There were no credit union liquidations this week. The total number of credit union liquidations for 2010 remains at 13.

Below is a summary of this week's bank failures:

111th Bank Failure of 2010 (21st in Florida)

  • FDIC Press Release
  • Closed Bank: Community National Bank At Bartow, Bartow, FL
  • Size: 1 branch, $67.9 million in assets, $63.7 million in deposits
  • Acquiring Bank: CenterState Bank of Florida, N.A., Winter Haven, Florida
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co deposits, have been assumed by CenterState Bank of Florida, N.A.
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $10.3 million
  • Enforcement Action: OCC 5/26/10 Consent Order
  • Financial Ratings: 1 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

112th Bank Failure of 2010 (22nd in Florida)

  • FDIC Press Release
  • Closed Bank: Independent National Bank, Ocala, FL
  • Size: 4 branches, $156.2 million in assets, $141.9 million in deposits
  • Acquiring Bank: CenterState Bank of Florida, N.A., Winter Haven, Florida
  • Possible Uninsured Deposits: CenterState Bank of Florida, N.A.
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $23.2 million
  • Enforcement Action: OCC 11/2/09 Consent Order
  • Financial Ratings: 0 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

113th Bank Failure of 2010 (1st in Virginia)

  • FDIC Press Release
  • Closed Bank: Imperial Savings and Loan Association, Martinsville, VA
  • Size: 1 branch, $9.4 million in assets, $10.1 million in deposits
  • Acquiring Bank: River Community Bank, N.A., Martinsville, VA
  • Possible Uninsured Deposits: all deposit accounts have been assumed by River Community Bank, N.A.
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $3.5 million
  • Enforcement Action: OTS 6/3/10 Prompt Corrective Action
  • Financial Ratings: 1 out of 5 at DepositAccounts.com, NR (Not Rated) at Bankrate.com, 0 star (lowest) at BauerFinancial

114th Bank Failure of 2010 (15th in Illinois)

  • FDIC Press Release
  • Closed Bank: ShoreBank, Chicago, IL
  • Size: 15 branches, $2.16 billion in assets, $1.54 billion in deposits
  • Acquiring Bank: Urban Partnership Bank, Chicago, IL, a newly-chartered institution
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co deposits were transferred to Urban Partnership Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $367.7 million
  • Enforcement Action: FDIC 7/14/09 C&D Order
  • Financial Ratings: 0 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

115th Bank Failure of 2010 (7th in California)

  • FDIC Press Release
  • Closed Bank: Butte Community Bank, Chico, CA
  • Size: 14 branches, $498.8 million in assets, $471.3 million in deposits
  • Acquiring Bank: Rabobank, N.A., El Centro, CA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Rabobank, N.A.
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $17.4 million
  • Enforcement Action: FDIC 5/18/10 Consent Order, FDIC 5/3/10 Prompt Corrective Action
  • Financial Ratings: 1 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

116th Bank Failure of 2010 (8th in California)

  • FDIC Press Release
  • Closed Bank: Pacific State Bank, Stockton, CA
  • Size: 9 branches, $312.1 million in assets, $278.8 million in deposits
  • Acquiring Bank: Rabobank, N.A., El Centro, CA
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co deposits, have been assumed by Rabobank, N.A.
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $32.6 million
  • Enforcement Action: FDIC 10/2/09 C&D Order
  • Financial Ratings: 0 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

117th Bank Failure of 2010 (9th in California)

  • FDIC Press Release
  • Closed Bank: Los Padres Bank, Solvang, CA
  • Size: 14 branches, $870.4 million in assets, $770.7 million in deposits
  • Acquiring Bank: Pacific Western Bank, San Diego, CA
  • Possible Uninsured Deposits: all deposit accounts, whether insured or not, have been assumed by Pacific Western Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $8.7 million
  • Enforcement Action: OTS 10/14/09 C&D Order, OTS 7/27/10 Prompt Corrective Action
  • Financial Ratings: 0 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

118th Bank Failure of 2010 (10th in California)

  • FDIC Press Release
  • Closed Bank: Sonoma Valley Bank, Sonoma, CA
  • Size: 3 branches, $337.1 million in assets, $255.5 million in deposits
  • Acquiring Bank: Westamerica Bank, San Rafael, CA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Westamerica Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $10.1 million
  • Enforcement Action: FDIC 5/18/10 Consent Order
  • Financial Ratings: 1 out of 5 at DepositAccounts.com, 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial

Financial ratings are based on March 31, 2010 data.

References:

Update 8/21/2010: Added financial ratings.


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Comments
8 comments.
Comment #1 by Anonymous posted on
Anonymous
Hi, you use to also include information in your post of what the bank health/financial ratings were at time of closure.  That was very helpful information, if you can still include.

2
Comment #4 by Fred (anonymous) posted on
Fred
This comment is about Shore bank closing.

This is sham closing since only the name will change and most of the old bank staff will transfer to the new bank.

“The good news is that the bank, under this new management, will still be there and serving the South Side community,” said Dory Rand, president of the Chicago-based Woodstock Institute, a non-profit that studies community lending. “They have made the South Side a decent place to live and work and do business.”

Investors include Goldman Sachs Group Inc., General Electric Co., JPMorgan Chase & Co., Citigroup Inc. and several philanthropic groups, the people said. ShoreBank raised more than $145 million from the firms in May and the funds were placed in escrow pending a decision by the U.S. Treasury to provide another $75 million in bank bailout funds.

This is not typical FDIC closure, it is on the taxpayer bailout expense. Shame on Obama's administration.

 

5
Comment #6 by Anonymous posted on
Anonymous
Last rose, 11 in Georgia so far this year.

1
Comment #8 by KenBDG posted on
KenBDG
@Anonymous #1, I was too tired last night to include the ratings for all 8 banks. But I just did an update with ratings from Bankrate, BauerFinancial and our own ratings at DepositAccounts.com.

5