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Seven Banks and One Credit Union Closed by Regulators

POSTED ON BY

This was a busy Friday for the FDIC. Seven banks failed bringing the yearly total to 139. Two banks failed in Florida, two in Georgia, one in Illinois, one in Kansas and one in Arizona. The 2 failures in Florida brings the 2010 total of bank failures in Florida to 27 which is the highest number for any state.

Six of the seven banks that failed were acquired by other banks. However, the FDIC wasn't able to find a buyer for First Arizona Savings, A FSB. Thus, the FDIC will be sending checks to the depositors. According to the FDIC's press release, the uninsured funds were estimated at $5.8 million. So several depositors may lose some of their money. For the vast majority of the 2010 banks closures, the FDIC has been able to find buyers who have assumed all deposits including those above the FDIC limit.

The largest bank that failed this Friday was Hillcrest Bank in Kansas which had 41 branches and $1.65 billion in assets. The buyer of this bank was a newly-chartered bank subsidiary of NBH Holdings Corp.

One of the banks that failed in Florida, Progress Bank in Tampa, had been offering a 4% high-yield reward checking account. However, the rate fell to 0.85% last March which was likely due to them being labeled as a less-than-well capitalized bank. Once a bank reaches that status, it has to keep its deposit rates under the FDIC rate caps. The FDIC considers reward checking accounts as interest checking accounts so that's why the rate went down that much. This is one reason to avoid weak banks when you're looking for a reward checking account.

In addition to seven bank failures, there was also a credit union liquidation. The NCUA announced this liquidation on Thursday. Unlike the FDIC, the NCUA rarely waits for Fridays. That brings the total number of credit union liquidations this year to 16.

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

133rd Bank Failure of 2010 (26th in Florida)

  • FDIC Press Release
  • Closed Bank: First Bank of Jacksonville, Jacksonville, FL
  • Size: 2 branches, $81.0 million in assets, $77.3 million in deposits
  • Acquiring Bank: Ameris Bank, Moultrie, GA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Ameris Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $16.2 million
  • Enforcement Action: FDIC 11/10/09 Consent Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 with a Texas Ratio of 466.78% at DepositAccounts.com

134th Bank Failure of 2010 (27th in Florida)

  • FDIC Press Release
  • Closed Bank: Progress Bank of Florida, Tampa, FL
  • Size: 2 branches, $110.7 million in assets, $101.3 million in deposits
  • Acquiring Bank: Bay Cities Bank, Tampa, FL
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Bay Cities Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $25.0 million
  • Enforcement Action: Federal Reserve 7/27/10 Written Agreement, Federal Reserve 7/23/10 PCA
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 323.86% at DepositAccounts.com

135th Bank Failure of 2010 (15th in Georgia)

  • FDIC Press Release
  • Closed Bank: The Gordon Bank, Gordon, GA
  • Size: 1 branch, $29.4 million in assets, $26.7 million in deposits
  • Acquiring Bank: Morris Bank, Dublin, GA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Morris Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $9.0 million
  • Enforcement Action: FDIC 5/4/09 C&D Order
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 with a Texas Ratio of 462.12% at DepositAccounts.com

136th Bank Failure of 2010 (16th in Georgia)

  • FDIC Press Release
  • Closed Bank: The First National Bank of Barnesville, Barnesville, GA
  • Size: 2 branches, $131.4 million in assets, $127.1 million in deposits
  • Acquiring Bank: United Bank, Zebulon, GA
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by United Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $33.9 million
  • Enforcement Action: OCC 6/9/09 Formal Agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 191.75% at DepositAccounts.com

137th Bank Failure of 2010 (16th in Illinois)

  • FDIC Press Release
  • Closed Bank: First Suburban National Bank, Maywood, IL
  • Size: 4 branches, $148.7 million in assets, $140.0 million in deposits
  • Acquiring Bank: Seaway Bank and Trust Company, Chicago, IL
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Seaway Bank and Trust Company
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $31.4 million
  • Enforcement Action: OCC 10/27/08 Formal Agreement
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 with a Texas Ratio of 374.42% at DepositAccounts.com

138th Bank Failure of 2010 (3rd in Kansas)

  • FDIC Press Release
  • Closed Bank: Hillcrest Bank, Overland Park, KS
  • Size: 41 branches, $1.65 billion in assets, $1.54 billion in deposits
  • Acquiring Bank: Hillcrest Bank, N.A., Overland Park, KS (newly-chartered bank subsidiary of NBH Holdings Corp)
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Hillcrest Bank, N.A.
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $329.7 million
  • Enforcement Action: OTS 8/7/09 C&D Order, OTS 8/18/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 568.09% at DepositAccounts.com

139th Bank Failure of 2010 (3rd in Arizona)

  • FDIC Press Release
  • Closed Bank: First Arizona Savings, A FSB, Scottsdale, AZ
  • Size: 7 branches, $272.2 million in assets, $198.8 million in deposits
  • Acquiring Bank: None
  • Possible Uninsured Deposits: $5.8 million
  • Rate Changes: checks to depositors for their insured funds will be mailed on Monday, October 25
  • Estimated Cost to Deposit Insurance Fund: $32.8 million
  • Enforcement Action: OTS 11/2/09 C&D Order, OTS 9/22/10 PCA
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 129.21% at DepositAccounts.com

16th Credit Union Liquidation of 2010 (closed on Oct 21, 2010)

  • NCUA Press Release
  • Liquidated CU: Phil-Pet Federal Credit Union, Pampa, TX
  • Size: $3.7 in assets and served 765 members
  • Acquiring CU: Pantex Federal Credit Union of Borger, TX
  • Financial Ratings: 2 out of 5 with a Texas Ratio of 185.33% at DepositAccounts.com, 1 star at Bankrate.com, ? stars at BauerFinancial

The above ratings are based on 6/30/2010 data.

References:


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Comments
4 comments.
Comment #1 by tightwad posted on
tightwad
What? First Mariner Bank wasn't one of them? I guess floating everyones money for 2 weeks saved them for another week...

10
Comment #2 by Anonymous posted on
Anonymous
First mariner bank is doomed to fail and I hope everyone in that bank who was responsible for devising such deceiving procedures will be on unemployment for a long time.

5
Comment #3 by Anonymous posted on
Anonymous
Just wondered when the list of problem banks would be updated (I mean the one listing the Texas Ratio scores)   I found this list very interesting and helpful and was curious to know if it is updated yearly or every quarter.  Thanks for all your information.

1
Comment #4 by Anonymous posted on
Anonymous
I hope they DON'T go on un-employment for a long time.... I am tired of these scammers living off MY tax dollar.

1