Dedicated to Deposits: Deals, Data, and Discussion
About Ken Tumin About Ken Tumin - Founder and Editor

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

Featured Savings Rates

Popular Posts

Featured Accounts

Two Small Banks in Nebraska & Utah Closed by Regulators

POSTED ON BY

Two small banks failed this Friday. The first was Mid City Bank, Inc in Nebraska, and the second was SunFirst Bank in Utah. Both were the first 2011 bank failure in their state. The total number of banks that have failed this year in the U.S. is now up to 87. At this time last year there had been 143 bank failures for 2010.

The FDIC arranged for Purdum State Bank to assume all deposits of Mid City Bank, including brokered deposits. So no depositors will lose any money even if they had deposits over the FDIC limit.

One interesting thing to note is that Purdum State Bank will be changing its name to Premier Bank on Saturday. Purdum State Bank is very small with assets of only $20.62 million which is less than one-fifth the assets of Mid City Bank. Perhaps that has something to do with the name change.

The FDIC arranged for Cache Valley Bank to assume most deposits of SunFirst Bank in Utah. This was interesting in that some deposits will be retained by the FDIC. Here's an excerpt from the FDIC's press release:

The FDIC will retain approximately $15 million in deposits that may be subject to external litigation involving SunFirst Bank. The affected accounts were frozen prior to the failure of the bank. All other accounts were transferred to Cache Valley Bank.

I did a search on the internet for more information on this SunFirst litigation. I came across this Vegas Inc article which described how SunFirst was tied to internet poker and a fraud case.

This week there were no credit union liquidations or credit unions placed into NCUA conservatorship. So far this year there have been 12 credit union liquidations and 11 credit unions that have been placed into conservatorships.

Below is the summary of Friday's bank failures.

86th Bank Failure of 2011 (1st in Nebraska)

  • FDIC Press Release
  • Closed Bank: Mid City Bank, Inc., Omaha, NE
  • Size: 5 branches, $106.1 million in assets and $105.5 million in deposits
  • Acquiring Bank: Purdum State Bank (changing name to Premier Bank), Purdum, NE
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by the new 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: $12.7 million
  • Enforcement Action: FDIC 11/20/09 Consent Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 299.26% at DepositAccounts.com (see financial rating note)
87th Bank Failure of 2011 (1st in Utah)

  • FDIC Press Release
  • Closed Bank: SunFirst Bank, Saint George, UT
  • Size: 3 branches, $198.1 million in assets and $169.1 million in deposits
  • Acquiring Bank: Cache Valley Bank, Logan, UT
  • Possible Uninsured Deposits: The FDIC will retain approximately $15 million in deposits that may be subject to external litigation involving SunFirst Bank. The affected accounts were frozen prior to the failure of the bank. All other accounts were transferred to Cache Valley 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: $49.7 million
  • Enforcement Action: FDIC 10/8/09 C&D Order, FDIC 7/28/11 PCA
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 2 stars & Texas Ratio of 161.14% at DepositAccounts.com (see financial rating note)

References:



Related Posts

Comments