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One Bank and Two Credit Unions Closed by Regulators

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One Bank and Two Credit Unions Closed by Regulators

After four weeks without any bank failures, one small bank failed this Friday. With the holidays fast approaching, this might be the last one for the year. The failed bank was Community Bank of the Ozarks in Sunrise Beach, Missouri. This is the 51st bank to fail in the nation this year, and it's the fourth to fail in Missouri. At this time last year there had been 92 bank failures, and by this time in 2010 there had been 157 bank failures.

The closure of Community Bank of the Ozarks was typical with the FDIC arranging for another bank to assume all deposits. 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 Bank of Sullivan.

CD customers at Community Bank of the Ozarks will have to wait to see what happens with the rates. The FDIC has its typical message about interest rates in its Q&As:

Interest on deposits accrued through close of business on December 14, 2012 will be paid at your same rate. Community Bank of the Ozarks' rates will be reviewed by Bank of Sullivan 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 Bank of Sullivan.

Credit union failures have been more common than bank failures in the last month. One credit union failed this week, and one failed in late November. Both were small credit unions. The total number of credit union failures for the year is now 13. One of those 13 was privately insured by the ASI.

Below is the summary of the recent bank and credit union failures:

51st Bank Failure of 2012 (4th in Missouri)

  • Closed Bank: Community Bank of the Ozarks, Sunrise Beach, MO
  • FDIC Press Release
  • Size: 2 branches, $42.8 million in assets and $41.9 million in deposits
  • Acquiring Bank: Bank of Sullivan, Sullivan, MO
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Bank of Sullivan (FDIC Q&A)
  • Rate Changes: Community Bank of the Ozarks' rates will be reviewed by Bank of Sullivan and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $10.4 million
  • Enforcement Action: Nothing public
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 726.30% at DepositAccounts.com (see financial rating note)

12th Credit Union (11th Federally Insured) Liquidation of 2012 (Nov 30)

  • Liquidated CU: Border Lodge Credit Union of Derby Line, Vermont
  • NCUA Press Release
  • Size: 1,097 members and had assets of approximately $3.1 million
  • Acquiring CU: None

13th Credit Union (12th Federally Insured) Liquidation of 2012 (Dec 13)

  • Liquidated CU: G.I.C. Federal Credit Union of Euclid, Ohio
  • NCUA Press Release
  • Size: 3,476 members and had assets of approximately $15.5 million
  • Acquiring CU: Certain share accounts transferred to Steel Valley Federal Credit Union of Cleveland. 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 at DepositAccounts.com and BauerFinancial are based on September 30, 2012. Ratings at Bankrate.com are based on June 30, 2012 data.

References:



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Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
which credit unions were closed and who if any took them over?

 

1
Comment #2 by Smokeboat (anonymous) posted on
Smokeboat
Thanks Ken and Thank You again for your dedication to your readers....Enjoy the Season

4
Comment #3 by Bancxman (anonymous) posted on
Bancxman
The financial information for CB of the Ozarks dates to September 30. So, how does a bank with a troubled asset ratio of 726% stay open this long? Closing a bank this close to Xmas is just plain rude. If I were on the FDIC liquidation crew assigned to that bank closing, I'd be sure to send the Missouri Bank Commisioner a big lump of coal for his stocking.

1
Comment #4 by Anonymous posted on
Anonymous
What's surprising to me is that there was no federal or state enforcement action prior to closing. If the bank had that bad of a Texas ratio, surely someone should have noticed earlier?

1