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Another 4 Banks Closed by Regulars - Yearly Total at 84

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This was the second Friday in a row with four bank failures. That raises the number of 2011 bank failures to 84. At this time last year there had been 139 bank failures for 2010.

Two of the four failed banks this Friday were in Georgia. That raises Georgia's 2011 bank failure total to 22. Georgia remains well in front of all other states with the most 2011 bank failures. The state with the second most failures is Florida which had one bank failure this Friday raising its 2011 total to 12. The fourth failed bank was in Colorado.

The Colorado bank that failed, Community Banks of Colorado, was noteworthy for its size. It was one of the few banks that failed this year with over $1 billion in assets. The vast majority of bank failures this year have been small community banks, most with assets far below $1 billion.

For each bank failure, the FDIC arranged for another bank to assume all deposits of the failed bank. The only exception was Community Banks of Colorado which didn't have some of its brokered deposits assumed. So no one with regular deposits lost any money even if they had over the FDIC limit.

With another bank assuming all of the deposits of the failed bank, the only thing depositors will have to worry about is losing the high interest rates of their CDs. For all four banks, the FDIC Q&A's just stated the typical line "Current rates will be reviewed by the new bank and may be lowered."

One of the acquiring banks, State Bank & Trust, also acquired a failed bank last Friday, Piedmont Community Bank. On its website, it provided some Q&As for customers of that failed bank. They will be lowering the CD rates. Here are the details they provided:

Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, October 14, 2011 will be paid at your same rate. To be consistent with rates offered by State Bank throughout its branch network, State Bank will adjust interest rates paid on deposit accounts of the former Piedmont Community Bank, including Certificates of Deposit (CDs), on November 1, 2011.

At least State Bank didn't adjust the rates on the day after the acquisition. They're giving customers about three weeks before the lower rates take effect. Customers should have time to take advantage of the penalty-free early withdrawal if the new rates aren't competitive.

State Bank hasn't yet posted information on its website on this Friday's acquisition, but it's likely to be similar to last Friday's acquisition.

This was another week with no credit union liquidations or credit unions placed into NCUA conservatorship. So far this year there have been 12 credit union liquidations and 10 credit unions that have been placed into conservatorships.

Below is the summary of Friday's bank failures.

81st Bank Failure of 2011 (12th in Florida)

  • FDIC Press Release
  • Closed Bank: Old Harbor Bank, Clearwater, FL
  • Size: 7 branches, $215.9 million in assets, $217.8 million in deposits
  • Acquiring Bank: 1st United Bank, Boca Raton, FL
  • Possible Uninsured Deposits: all deposit accounts, including broker deposit accounts, has been assumed by 1st United Bank
  • Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $39.3 million
  • Enforcement Action: FDIC 8/27/10 Consent Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 507.17% at DepositAccounts.com (see financial rating note)
82nd Bank Failure of 2011 (21st in Georgia)

  • FDIC Press Release
  • Closed Bank: Decatur First Bank, Decatur, GA
  • Size: 5 branches, $191.5 million in assets, $179.2 million in deposits
  • Acquiring Bank: Fidelity Bank, Atlanta, GA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, has been assumed by Fidelity Bank
  • Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC's Q&As)
  • Estimated Cost to Deposit Insurance Fund: $32.6 million
  • Enforcement Action: FDIC 12/21/09 Consent Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 443.23% at DepositAccounts.com (see financial rating note)
83rd Bank Failure of 2011 (22nd in Georgia)

  • FDIC Press Release
  • Closed Bank: Community Capital Bank, Jonesboro, GA
  • Size: 2 branches, $181.2 million in assets, $166.2 million in deposits
  • Acquiring Bank: State Bank and Trust Company, Macon, GA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by State Bank and Trust Company
  • Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC's Q&As)
  • Estimated Cost to Deposit Insurance Fund: $62.0 million
  • Enforcement Action: FDIC 4/16/09 C&D Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 555.28% at DepositAccounts.com (see financial rating note)
84th Bank Failure of 2011 (6th in Colorado)

  • FDIC Press Release
  • Closed Bank: Community Banks of Colorado, Greenwood, CO
  • Size: 40 branches, $1.38 billion in assets, $1.33 billion in deposits
  • Acquiring Bank: Bank Midwest, N.A., Kansas City, MO
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Bank Midwest, N.A.
  • Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC's Q&As)
  • Estimated Cost to Deposit Insurance Fund: $224.9 million
  • Enforcement Action: Federal Reserve 3/25/09 written agreement, Federal Reserve 2/8/11 PCA
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 212.23% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at Bankrate.com & DepositAccounts.com, Texas Ratios over 100% is considered at risk. DepositAccounts.com and BauerFinancial ratings are based on June 2011 data. Bankrate ratings are based on March 2011 data.

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Comments
2 Comments.


Comment #2 by Bank Review (anonymous) posted on
Bank Review
Funny video on Bank of America $5 Debit Fee:

http://www.youtube.com/user/bankreview

1
Comment #3 by Anonymous posted on
Anonymous
Regulars?

1