Featured Savings Rates

Popular Posts

Featured Accounts

Hume Bank, a Small Missouri Bank, Becomes Second Bank to Fail This Year


The FDIC just came out with this press release about the closure of Hume Bank. It was a very small bank with only one office, 9 employees, $18.7 million in assets and $13.6 million in deposits based on 12/31/07 data at the FDIC. It has been around for a while. It was established in 1909, and became a member FDIC in 1934.

Another interesting stat to look is how this bank was rated. Bankrate gave it 2 out of 5 stars (below peer group) based on 9/30/07 data. BaeurFinancial gave it 3 out of 5 stars (adequate) based on 9/30/07 data.

According to the FDIC press release:
The failed bank's sole office will reopen Monday as a branch of Security Bank. Security Bank has agreed to assume $12.5 million of the failed bank's insured deposits for a premium of 4.26 percent. Hume Bank had approximately $1.1 million in 33 deposit accounts that exceeded the federal deposit insurance limit. These customers will have immediate access to their insured deposits, and they will become creditors of the receivership for the amount of their uninsured funds.

As I mentioned in this post, the FDIC has been preparing for up to 200 bank failures in the next two years. We'll see if this latest failure is just the tip of the iceberg. The first bank failure of the year was also in Missouri and like Hume Bank, it was a small bank (see post).

For more facts and links about FDIC, please refer to my preparing for bank failure post.

Thanks to the readers who emailed and commented about this news.

Related Posts

Anonymous   |     |   Comment #1
Citibank's "Ultimate Money Account" is now at 3.75% APY (from 4% yesterday), "e-Savings" is at 2.50% (from 3% yesterday)
Anonymous   |     |   Comment #2
Seems to me it is common for the "takeover" to be announced on a Friday, giving them the weekend to work things over and have it back to business Monday morning.
Andrew   |     |   Comment #3
This goes to show how worthless those ratings are.