Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

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.



 
2
brandon2brandon26 posts since
Mar 7, 2011
Rep Points: 30
1. Friday, March 11, 2011 - 6:04 PM
Legacy Bank, Milwaukee, WI, 0* on Bauer
2
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.
2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
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
2
ocsteveocsteve14 posts since
Jan 17, 2010
Rep Points: 59
Reply