Four Banks Closed by Regulators, 143 So Far This Year
After taking last Friday off, the FDIC was busy today with four bank failures. The first bank to fail today was in Maryland. The other three failures were on the West Coast with two in California and one in Washington.
The total number of bank failures for 2010 is now 143. As a comparison, the total number of failures in 2009 was 140, so we now have surpassed the number of 2009 failures. Last year at this time there had been 120 bank failures. For this year it looks like we're on track for a total number of bank failures of around 160. That's fewer than what I had thought at the beginning of 2010.
All four banks were small with three having only one office. The largest bank was K Bank in Maryland which had 7 offices and $538.3 million in assets.
The FDIC was able to find buyers for all four banks. The acquiring banks assumed all regular deposits, even those above the FDIC limit. The only exception was some brokered deposits.
There were no credit union liquidations this week. The total number of credit union liquidations this year remains at 17.
Below is a summary of this week's bank failures:
140th Bank Failure of 2010 (4th in Maryland)
- FDIC Press Release
- Closed Bank: K Bank, Randallstown, MD
- Size: 7 branches, $538.3 million in assets, $500.1 million in deposits
- Acquiring Bank: M&T Bank, Buffalo, NY
- Possible Uninsured Deposits: All of the deposits, except certain brokered deposits, were assumed by M&T Bank
- Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
- Estimated Cost to Deposit Insurance Fund: $198.4 million
- Enforcement Action: FDIC 4/01/09 C&D Order
- Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 0 out of 5 with a Texas Ratio of 309.07% at DepositAccounts.com
141st Bank Failure of 2010 (11th in California)
- FDIC Press Release
- Closed Bank: Western Commercial Bank, Woodland Hills, CA
- Size: 1 branch, $98.6 million in assets, $101.1 million in deposits
- Acquiring Bank: First California Bank, Westlake Village, CA
- Possible Uninsured Deposits: All deposit accounts have been assumed by First California Bank
- Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
- Estimated Cost to Deposit Insurance Fund: $25.2 million
- Enforcement Action: FDIC 9/18/09 C&D Order, FDIC 8/05/10 PCA
- Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 186.30% at DepositAccounts.com
142nd Bank Failure of 2010 (11th in Washington)
- FDIC Press Release
- Closed Bank: Pierce Commercial Bank, Tacoma, WA
- Size: 1 branch, $221.1 million in assets, $193.5 million in deposits
- Acquiring Bank: Heritage Bank, Olympia, WA
- Possible Uninsured Deposits: All deposit accounts, including brokered deposits, have been assumed by Heritage Bank
- Rate Changes: Heritage Bank will send CD holders a letter by 11/15/2010 advising what it plans to do with current interest rates (FAQs)
- Estimated Cost to Deposit Insurance Fund: $21.3 million
- Enforcement Action: Federal Reserve 12/4/09 C&D Order, Federal Reserve 6/10/10 PCA
- Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 92.63% at DepositAccounts.com
143rd Bank Failure of 2010 (12th in California)
- FDIC Press Release
- Closed Bank: First Vietnamese American Bank, Westminster, CA
- Size: 1 branch, $48.0 million in assets, $47.0 million in deposits
- Acquiring Bank: Grandpoint Bank, Los Angeles, CA
- Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Grandpoint Bank
- Rate Changes: Current rates will be reviewed by the acquiring institution and may be lowered
- Estimated Cost to Deposit Insurance Fund: $9.6 million
- Enforcement Action: FDIC 1/29/09 C&D Order, FDIC 9/28/10 PCA
- Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star at BauerFinancial, 1 out of 5 with a Texas Ratio of 266.09% at DepositAccounts.com
The above ratings are based on 6/30/2010 data.
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