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Bank Failures 3/11/2011

Friday, March 11, 2011 - 5:39 PM
Not sure if Ken will be around to keep track of these.

First National Bank of Davis, OK. Rated 3.5* by Bauer (interesting). Assuming bank paid 7.5% premium to assume deposits (very interesting).

Will post more if there are more.

brandon2brandon26 posts since
Mar 7, 2011
Rep Points: 30
1. Friday, March 11, 2011 - 6:04 PM
Legacy Bank, Milwaukee, WI, 0* on Bauer
brandon2brandon26 posts since
Mar 7, 2011
Rep Points: 30
2. Saturday, March 12, 2011 - 7:52 AM
Thanks for recording the Bauer ratings. Bauer doesn't waste anytime to remove their ratings of the failed banks.

I've just published my review of these faiures.
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,702
3. Saturday, March 12, 2011 - 12:25 PM
Re deposit premium paid of 7.5%-  If my memory serves correctly, I think most acquisitions of deposits have been made at 0-1% or high end of 1.25-1.50% only.  I cannot understand how a deposit franchise would be worth anywhere near 5% or more in any case.  The only explanation I can think of is if the branches were located in owned land/buildings and they might be really valuable or beneficial (under current market rate) long-term leases are present.  It will be interesting to see what explanation is obtained from the assuming Bank.

OC Steve
ocsteveocsteve14 posts since
Jan 17, 2010
Rep Points: 58