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First Bank Failures of the Year in Florida, Georgia & Pennsylvania

POSTED ON BY

The first bank failures of 2012 took place this Friday. It has been over a month since the last bank failed before the holidays. There were three bank failures this Friday. Two of the three were in Georgia and Florida which were the states that had the most bank failures last year. The other one was in Pennsylvania which only had one bank failure in 2011.

As was common last year, the banks that failed this Friday were small banks with assets under $1 billion. The largest was the Georgia bank with $536.9 million in assets. The other two had under $100 million in assets. The failed Florida bank had $79.1 million in assets, and the Pennsylvania bank was very small with only $19.6 million in assets.

Also like last year, the FDIC found buyers for all three banks, and the buyers agreed to assume all regular deposits, including amounts over the FDIC coverage limits. Thus, no one lost money even if they had deposits over the FDIC limit. The only exception were certain brokered deposits which were not assumed by the Georgia bank or the Florida bank.

The main concern for depositors will be how much the new banks will lower rates on existing CDs from the failed banks. For all three cases, the FDIC provided its typical Q&A:

rates will be reviewed by the new bank and may be lowered; however, you will be notified in writing of any changes. You may withdraw funds from any transferred account, regardless of whether your interest rate changes, without early withdrawal penalty until you enter into a new deposit agreement with the new bank.

In addition to the three bank failures, one credit union has been placed into conservatorship. This actually happened in the first week of January. It's a tiny credit union with only $1.10 million in assets. No deposits are affected when a credit union is placed into conservatorship. However, if the NCUA determines that the credit union can't be saved, it will be liquidated. Consequently, members who find their credit union placed into conservatorship should immediately ensure that all of their deposits are below the NCUA deposit coverage limits.

Below is the summary of Friday's bank failures and one credit union that was placed into conservatorship.

1st Bank Failure of 2012 (1st in Florida)

  • FDIC Press Release
  • Closed Bank: Central Florida State Bank, Belleview, FL
  • Size: 4 branches, $79.1 million in assets and $77.7 million in deposits
  • Acquiring Bank: CenterState Bank of Florida, N.A., Winter Haven, FL
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co. deposits, have been assumed by CenterState Bank of Florida, N.A.
  • Rate Changes: Central Florida State Bank's rates will be reviewed by the new bank and may be lowered (FDIC Q&As)
  • Estimated Cost to Deposit Insurance Fund: $24.4 million
  • Enforcement Action: FDIC 4/8/11 Consent Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 473.88% at DepositAccounts.com (see financial rating note)
2nd Bank Failure of 2012 (1st in Georgia)

  • FDIC Press Release
  • Closed Bank: The First State Bank, Stockbridge, GA
  • Size: 7 branches, $536.9 million in assets and $527.5 million in deposits
  • Acquiring Bank: Hamilton State Bank, Hoschton, GA
  • Possible Uninsured Deposits: All deposit accounts, excluding the Cede & Co deposits has been assumed by Hamilton State Bank
  • Rate Changes: The First State Bank’s rates will be reviewed by the new bank and may be lowered (FDIC Q&As)
  • Estimated Cost to Deposit Insurance Fund: $216.2 million
  • Enforcement Action: No public actions
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 870.17% at DepositAccounts.com (see financial rating note)
3rd Bank Failure of 2012 (1st in Pennsylvania)

  • FDIC Press Release
  • Closed Bank: American Eagle Savings Bank, Boothwyn, PA
  • Size: 1 branch, $19.6 million in assets and $17.7 million in deposits
  • Acquiring Bank: Capital Bank, N.A., Rockville, MD
  • Possible Uninsured Deposits: All deposit accounts, including brokered deposits, have been assumed by Capital Bank, N.A.
  • Rate Changes: American Eagle Savings Bank's rates will be reviewed by the new bank and may be lowered (FDIC Q&As)
  • Estimated Cost to Deposit Insurance Fund: $3.2 million
  • Enforcement Action: OTS 7/6/10 C&D Order, OTS 7/1/11 PCA
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial (see financial rating note)

1st Credit Union Conservatorship of 2012 (Jan 6)

  • NCUA Press Release
  • CU placed into conservatorship: People for People Community Development Credit Union
  • Size: $1.1 million in assets and 1,561 members
  • Financial Ratings: 1 star at Bankrate.com, ? star at BauerFinancial, 1 star & Texas Ratio of 195.45% 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. Ratings are based on September 2011 data.

References:



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Comments
3 Comments.
Comment #1 by Anonymous posted on
Anonymous
When you report bank and credit union failures, why not identify them (at least with a short name) in the first paragraph, so we don't have to go searching to see if we are in trouble?  Thanks.

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Comment #2 by Anonymous posted on
Anonymous
TO #1 IT REALLY WONT MATTER IF YOUR FULLY INSURED....

4
Comment #3 by Anonymous posted on
Anonymous
Reply to No. 2: When a bank or credit union is taken over, it is a huge hassle to get your money out, plus you'll probably have to reinvest your funds at a much lower rate -- which can cost you thousands of dollars (nowadays) in lost interest and sometimes can mean lengthy delays in even getting your money.  Being fully insured does not preclude the associated headaches with your bank or credit union going under -- ask the former Indy Mac CD holders!!

2