This was a quiet Friday for bank closures. Only one bank failed today. Pinehurst Bank in St. Paul, Minnesota was closed by regulators, and the FDIC arranged for Coulee Bank to assume all deposits, even deposits above the FDIC limits. Pinehurst was a small bank with only one office and only $58.3 million in deposits. Pinehurst is the 73rd bank failure so far in 2010.
You might recognize Coulee Bank. It's one of the few banks that offer nationwide reward checking accounts. I was a little worried when I first saw Coulee Bank in the press release headline. The first bank mentioned in the FDIC press release titles is the bank that assumes all deposits. Having the failed bank listed first in the title would make more sense to me.
In addition to a bank failure, there was also a credit union failure this week. Unlike the FDIC, the NCUA doesn't wait till Fridays. The credit union was liquidated on Monday. The failed credit union, Convent Credit Union of New York, NY, was tiny with only 213 members and $153,000 in assets. The NCUA did not have another credit union acquire the failed credit union. So checks are being issued to "individuals holding verified share accounts."
The FDIC released its first quarter banking report on Thursday. The number of problem banks has increased from 702 to 775. This "problem list" is secret. Calculated Risk Blog maintains an unofficial list of problem banks. The list is based on public enforcement actions. The vast majority of banks that have failed this year have been operating under public enforcement actions.
Below is a summary of this week's institution failures:
73rd Bank Failure of 2010 (6th in MN)
- FDIC Press Release
- Closed Bank: Pinehurst Bank, St. Paul, MN
- Size: 1 branch, $61.2 million in assets, $58.3 million in deposits
- Possible Uninsured Deposits: all deposit accounts transferred
- Acquiring Bank: Coulee Bank, La Crosse, WI
- Rate Changes: Coulee Bank will review rates
- Estimated Cost to Deposit Insurance Fund: $6.0 million
- Enforcement Action: FDIC 3/24/10 Consent Order
- Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
8th Credit Union Liquidation of 2010
- NCUA Press Release
- Liquidated CU: Convent Federal Credit Union, New York, NY
- Size: $173,000 in assets and served 213 members
- Acquiring CU: None
- Financial Ratings: 2 stars (below peer group) at Bankrate.com, ? star at BauerFinancial
The above financial ratings are based on 12/31/09 data.