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Two Bank Failures in Florida and Washington State

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Two Bank Failures in Florida and Washington State

Two small banks were closed by regulators this Friday. Just like last Friday, one bank failed in Florida and in one failed in Washington State. This brings the yearly total to 129. The first bank to fail today was Wakulla Bank in Florida. This increased the number of failures in Florida to 25. On the opposite side of the nation, Shoreline Bank in Washington State failed. That brings Washington State's total this year to 10.

As has been typical, the FDIC was able to find buyers for both failed banks, and both acquiring banks agreed to assume all deposits including those over the FDIC limit. The only concern for depositors will be the potential of rate cuts on their existing CDs. For both cases the FDIC has the same Q&A regarding 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.

Both of the failed banks had very low ratings for financial health. However, Wakulla Bank wasn't on Calculated Risk Blog's Unofficial Problem Bank List. Apparently, there had been no public enforcement action which would have put the bank on the list.

There were no credit union liquidations this week. The total number of credit union liquidations for this year remains at 15.

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

128th Bank Failure of 2010 (25th in Florida)

  • FDIC Press Release
  • Closed Bank: Wakulla Bank, Crawfordville, FL
  • Size: 12 branches, $424.1 million in assets, $386.3 million in deposits
  • Acquiring Bank: Centennial Bank, Conway, AR
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co. deposits, have been assumed by Centennial Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $113.4 million
  • Enforcement Action: None
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 172.05% at DepositAccounts.com

129th Bank Failure of 2010 (10th in Washington State)

  • FDIC Press Release
  • Closed Bank: Shoreline Bank, Shoreline, WA
  • Size: 3 branches, $104.2 million in assets, $100.2 million in deposits
  • Acquiring Bank: GBC International Bank, Los Angeles, CA
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co. deposits, whether insured or not, have been assumed by GBC International Bank
  • Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
  • Estimated Cost to Deposit Insurance Fund: $41.4 million
  • Enforcement Action: FDIC 12/29/09 Consent Order, FDIC 5/27/10 Prompt Corrective Action
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 with a Texas Ratio of 402% at DepositAccounts.com

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

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