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Six Banks and One Credit Union Closed by Regulators

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Six Banks and One Credit Union Closed by Regulators

After three weeks with only one bank failure, it's back to the busy Fridays. Six banks were closed by regulators this Friday which brings the year's total to 125. Three of the failures occurred in Georgia. That brings Georgia's number of bank failures this year to 14. It's getting close to Illinois which has 15, but it has a way to go to reach Florida which has 23. The other bank failures occurred in New Jersey, Wisconsin and Ohio.

One notable bank that was closed was ISN Bank in New Jersey. This was a small bank, but it had offered accounts online available nationwide. I first reported on this bank in 2008 when they had some competitive short-term CDs.

For all six 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. When I checked the banks' websites this evening, none of them had any mention of this. If you find additional info, please leave a comment.

One credit union was liquidated on Monday. It was a small credit union in Puerto Rico which had $3.7 million in assets and 1,956 members. This was the 15th credit union failure of the year.

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

120th Bank Failure of 2010 (1st in New Jersey)

  • FDIC Press Release
  • Closed Bank: ISN Bank, Cherry Hill, NJ
  • Size: 1 branch, $81.6 million in assets, $79.7 million in deposits
  • Acquiring Bank: New Century Bank (doing business as Customers Bank), Phoenixville, PA
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Customers Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $23.9 million
  • Enforcement Action: FDIC 12/31/07 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 at DepositAccounts.com

121st Bank Failure of 2010 (12th in Georgia)

  • FDIC Press Release
  • Closed Bank: Bank of Ellijay, Ellijay, GA
  • Size: 2 branches, $168.8 million in assets, $160.7 million in deposits
  • Acquiring Bank: Community & Southern Bank, Carrollton, GA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Community & Southern Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $55.2 million
  • Enforcement Action: FDIC 11/23/09 Consent Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 at DepositAccounts.com

122nd Bank Failure of 2010 (13th in Georgia)

  • FDIC Press Release
  • Closed Bank: First Commerce Community Bank, Douglasville, GA
  • Size: 2 branches, $248.2 million in assets, $242.8 million in deposits
  • Acquiring Bank: Community & Southern Bank, Carrollton, GA
  • Possible Uninsured Deposits: all deposit accounts [?] have been assumed by Community & Southern Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $71.4 million
  • Enforcement Action: FDIC 12/18/08 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 at DepositAccounts.com

123rd Bank Failure of 2010 (14th in Georgia)

  • FDIC Press Release
  • Closed Bank: The Peoples Bank, Winder, GA
  • Size: 14 branches, $447.2 million in assets, $398.2 million in deposits
  • Acquiring Bank: Community & Southern Bank, Carrollton, GA
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Community & Southern Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $98.9 million
  • Enforcement Action: FDIC 12/15/09 Consent Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 at DepositAccounts.com

124th Bank Failure of 2010 (2nd in Ohio)

  • FDIC Press Release
  • Closed Bank: Bramble Savings Bank, Milford, OH
  • Size: 1 branch, $47.5 million in assets, $41.6 million in deposits
  • Acquiring Bank: Foundation Bank, Cincinnati, OH
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Foundation Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $14.6 million
  • Enforcement Action: FDIC 9/28/07 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 at DepositAccounts.com

125th Bank Failure of 2010 (1st in Wisconsin)

  • FDIC Press Release
  • Closed Bank: Maritime Savings Bank, West Allis, WI
  • Size: 9 branches, $350.5 million in assets, $248.1 million in deposits
  • Acquiring Bank: North Shore Bank, FSB, Brookfield, WI
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by North Shore Bank, FSB
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $83.6 million
  • Enforcement Action: OTS 11/06/09 C&D Order, 3/11/10 Prompt Corrective Action
  • Financial Ratings: No rating at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 at DepositAccounts.com

15th Credit Union Liquidation of 2010 (closed on Sep 13)

  • NCUA Press Release
  • Liquidated CU: Industries Puerto Rico Federal Credit Union of Manati, PR
  • Size: $3.7 million in assets and served 1,956 members
  • Acquiring CU: Borinquen Community Federal Credit Union

The above ratings are based on 6/30/2010 data except for Bankrate.com which is based on March 2010 data.

References:



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Comments
4 Comments.
Comment #1 by Alan (anonymous) posted on
Alan
Funny.  I saw just about to hit "send" on an email when I noticed that you fixed that typo about Maritime (in WI).

 

:)

1
Comment #2 by KenBDG posted on
KenBDG
Yup, I'm afraid I noticed a few mistakes after I published. Sorry about that. Fortunately, the FDIC didn't have any late closures on the west coast. I don't think I would have been able to stay awake.

3
Comment #4 by Anonymous posted on
Anonymous
I used to be a customer at ISN Bank.  Left maybe a year or two ago.  Still, I liked the bank and the people.  They always treated me well.  Sorry to see them go and I hope the employees are not hit too hard.

2
Comment #5 by Anonymous posted on
Anonymous
And I thought I heard that the recession is 'officially over!

1