2 Banks in Florida and Illinois and a Texas Credit Union Closed by Regulators
Two community banks failed this Friday in Florida and Illinois which brings the total number of bank failures for the year to 49. There was also a liquidation this week of a small Texas credit union. At this time last year there had been 87 bank failures, and by this time in 2010 there had been 143 bank failures.
The Florida bank that failed was Heritage Bank of Florida in Lutz. This was the 8th bank failure this year in Florida. The failed Illinois bank was Citizens First National Bank in Princeton. This was also the 8th bank failure this year for the state. The only state with more bank failures this year is Georgia which has 9 failures.
For the two bank failures the FDIC arranged for other banks to assume all deposits. In both cases, the FDIC had the following message in its Q&As:
No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to [the new bank].
CD customers at the failed banks will have to wait to see what happens with the rates. The FDIC provided its typical paragraph on interest rates in all of the Q&As:
Interest on deposits accrued through close of business on November 2, 2012 will be paid at your same rate. [The failed bank's] 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].
One tiny credit union was liquidated this week. NCUA liquidated the Women’s Southwest Federal Credit Union. The total number of credit union failures is now 11. One of those 11 was privately insured by the ASI.
Below is the summary of this week's bank and credit union failures:
48th Bank Failure of 2012 (8th in Florida)
- Closed Bank: Heritage Bank of Florida, Lutz, FL
- FDIC Press Release
- Size: 3 branches, $225.5 million in assets and $223.3 million in deposits
- Acquiring Bank: Centennial Bank, Conway, AR
- Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Centennial Bank (FDIC Q&A)
- Rate Changes: Heritage Bank of Florida's rates will be reviewed by Centennial Bank and may be lowered (FDIC Q&A)
- Estimated Cost to Deposit Insurance Fund: $65.5 million
- Enforcement Action: FDIC 12/9/10 Consent Order
- Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 154.34% at DepositAccounts.com (see financial rating note)
49th Bank Failure of 2012 (8th in Illinois)
- Closed Bank: Citizens First National Bank, Princeton, IL
- FDIC Press Release
- Size: 21 branches, $924.0 million in assets and $869.4 million in deposits
- Acquiring Bank: Heartland Bank and Trust Company, Bloomington, IL
- Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Heartland Bank and Trust Company (FDIC Q&A)
- Rate Changes: Citizens First National Bank's rates will be reviewed by Heartland Bank and Trust Company and may be lowered (FDIC Q&A)
- Estimated Cost to Deposit Insurance Fund: $45.2 million
- Enforcement Action: OCC 9/20/11 Consent Order, OCC 3/29/12 PCA
- Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 185.89% at DepositAccounts.com (see financial rating note)
11th Credit Union (10th Federally Insured) Liquidation of 2012 (Oct 31)
- Liquidated CU: Women’s Southwest Federal Credit Union (WSFCU) of Dallas, Texas
- NCUA Press Release
- Size: 743 members and had deposits of approximately $2 million
- Acquiring CU: Certain share accounts transferred to City Credit Union, NCUA will issue checks for other accounts
Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at DepositAccounts.com & Bankrate.com, Texas Ratios over 100% is considered at risk. Ratings are based on June 30, 2012 data.