Posted by Ray on September 25, 2009 under FDIC, Main | 
At 4:18 the 95th bank closure was announced by the FDIC. Georgian Bank was closed today with First Citizens Bank and Trust assuming its assets.
I am sure there are more to come, stand by…
Bank___________State_____________Assets______________Deposits
Georgian Bank____GA_______________$2B________________$2B
The FDIC estimates a loss of $892M from this closure AND entered into a loss-share agreement with First Citizens Bank and Trust for a total of $2B.
That’s it folks, the FDIC is down to its very last few billion before it is insolvent.
Georgian Bank:
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Posted by Ray on September 18, 2009 under FDIC, Main |
The failures started early today with the FDIC reporting 2 closures, both the same bank, but in teo different states, by 5:00 PM today. These 2 closures means that 94 banks have closed this year, with is astounding. The FDIC is also, basically, broke and is considering getting more cash from the Treasury, they have a $500 billion line of credit and I think they will need a good portion of that in the near future.
On another note, sorry for the lack of posts this week, I am working on a project which is taking a lot of time right now.
Irwin Bank had branches in Kentucky and Ohio, so it was reported weird, but I will use the total number of deposits and assets below.
Bank_____________State____________Assets_______________Deposits
Irwin Union Bank____KY______________$3.1B________________$2.5B
The FDIC estimates a loss of $850 million and entered into a loss-share agreement with First Financial Bank, the acquirer, of $2.5 billion. Basically, we know they lost $850 million for sure, but the FDIC will surely realize some losses on the $2.5 billion loss-share agreement.
The size of the bank closures are getting larger, in case you have not noticed as the closures are not reported on the evening news anymore. I guess the failure of the banking system is somehow not important enough for the news outlets to cover. More later as the closures come in.
Irwin Union Bank:
Federal and state regulators today closed Irwin Union Bank, F.S.B., Louisville, Kentucky, and Irwin Union Bank and Trust Company, Columbus, Indiana, respectively. The institutions are banking subsidiaries of Irwin Financial Corporation, Columbus, Indiana. The regulators immediately named the Federal Deposit Insurance Corporation (FDIC) as the receiver for the banks. To protect depositors, the FDIC entered into a purchase and assumption agreement with First Financial Bank, National Association, Hamilton, Ohio, to assume all of the deposits of the two banks.
Irwin Union Bank and Trust Company, Columbus, Indiana, was closed by the Indiana Department of Financial Institutions. As of August 31, 2009, it had total assets of $2.7 billion and total deposits of approximately $2.1 billion. Irwin Union Bank, F.S.B., Louisville, Kentucky, was closed by the Office of Thrift Supervision. As of August 31, 2009, it had total assets of $493 million and total deposits of approximately $441 million.
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Posted by Ray on September 11, 2009 under FDIC |
92 Banks Closed as of September 11, 2009.
There is nothing to see here. The financial system is completely fine and solvent and the bank closures is fine because they were small institutions. Never mind that this year the FDIC has lost more money with smaller bank closures than last year when the likes of Washington Mutual and IndyMac failed. Forget the fact that the FDIC is destined to have to get bailed out by Congress or the Federal Reserve, what’s another few billion. Keep buying those stocks and pay no attention to this list because everything is fine.
Clearly I am being a bit sarcastic, but seriously with X amount of bank closures how can anyone say things are OK? What caused this whole problem were a small percentage of defaults on mortgages, but now those few defaults are a tidal wave of defaults. If the problem that led to the financial crisis was defaults and now defaults have tripled how in the world is the financial system safe? It is not, but don’t let the facts get in the way of irrational markets.
Here are this week’s failed banks:
Bank____________________State______________Assets________________Deposits
Corus Bank_______________IL________________$7B__________________$7B
Brickwell Community Bank__MN______________$72M_________________$63M
Venture Bank_____________WA_______________$970M________________$903M
The FDIC incurred an estimated $1.7B loss and MB Financial agreed to buy $3B of Corus Banks assets, the FDIC will retain and sell the remaining assets.
The FDIC will incur an estimated loss of $22M and entered into a loss-share agreement for $65M with CorTrust Community Bank who bought Brickwell Community Bank.
The FDIC will incur an estimated loss of $298M and entered into a loss-share agreement with First-Citizens Bank & Trust, the acquiring bank, of $715M
The total losses the FDIC has incurred this week was $2.02B and entered into a total loss-share agreements of $780M, which the FDIC will realize losses in because of its new mandate for acquiring banks to modify mortgages.
Corus:
Corus Bank, National Association, Chicago, Illinois, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank, N.A.
The eleven branches of Corus Bank will reopen on their next normally scheduled business day as branches of MB Financial Bank. Depositors of Corus Bank will automatically become depositors of MB Financial Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until MB Financial Bank can fully integrate the deposit records of Corus Bank.
Brickwell Community Bank:
Brickwell Community Bank, Woodbury, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CorTrust Bank, N.A., Mitchell, South Dakota, to assume all of the deposits of Brickwell Community Bank.
The sole branch of Brickwell Community Bank will reopen on Saturday as a branch of CorTrust Bank. Depositors of Brickwell Community Bank will automatically become depositors of CorTrust Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until CorTrust Bank can fully integrate the deposit records of Brickwell Community Bank.
Venture Bank:
Venture Bank, Lacy, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Venture Bank.
The eighteen branches of Venture Bank will reopen during normal business hours beginning tomorrow as branches of First-Citizens Bank & Trust Company. Depositors of Venture Bank will automatically become depositors of First-Citizens Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First-Citizens Bank & Trust Company can fully integrate the deposit records of Venture Bank.
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Posted by Ray on August 28, 2009 under FDIC, Main |
Here are tonight’s bank closures for August 28, 2009. These represent the 82nd, 83rd and 84th closures so far this year. I will update you as more closures come in.
Banks_____________State___________Assets_________Deposits
Bradford Bank_______MD___________$452M_________$383M
Mainstreet Bank______MN__________$459M__________$434M
Affinity Bank_________CA___________$1B_____________$922M
The FDIC estimates its loss on Bradford Bank to be $97M and entered a loss-share agreement with the acquiring bank, M&T Bank, for $383M.
The FDIC estimates its losses on Mainstreet Bank to be $95M and they entered into a loss-share agreement with the acquiring bank, Central Bank, for $268M.
The FDIC Estimates a loss of $254M and entered into a loss-share agreement with Pacific Western Bank for $934M.
Bradford Bank:
Bradford Bank, Baltimore, Maryland, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Manufacturers and Traders Trust Company (M&T), Buffalo, New York, to assume all of the deposits of Bradford Bank.
The nine branches of Bradford Bank will reopen on Saturday as branches of M&T. Depositors of Bradford Bank will automatically become depositors of M&T. Depositors will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until M&T can fully integrate the deposit records of Bradford Bank.
Mainstreet Bank:
Mainstreet Bank, Forest Lake, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Mainstreet Bank.
The eight branches of Mainstreet Bank will reopen on Saturday as branches of Central Bank. Depositors of Mainstreet Bank will automatically become depositors of Central Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Central Bank can fully integrate the deposit records of Mainstreet Bank.
Affinity Bank:
Affinity Bank, Ventura, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Pacific Western Bank, San Diego, California, to assume all of the deposits of Affinity Bank.
Affinity Bank had ten branches. The former Affinity Bank branches located in San Francisco and San Mateo will reopen starting tomorrow and the remaining branches will reopen on Monday as branches of Pacific Western Bank. Depositors of Affinity Bank will automatically become depositors of Pacific Western Bank. Depositors will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Pacific Western Bank can fully integrate the deposit records of Affinity Bank.
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Posted by Ray on August 21, 2009 under FDIC, Main |
Guaranty Bank of Texas is now closed, I’ve been waiting for this one. A $13 Billion dollar organization, gone as their future was left in limbo for some time now, but there it is. This brings to total closures to 4 tonight and a running total of 81 banks closed this year. Probably one more in the West tonight as well, stay tuned.
In addition to ebank, 2 more banks were closed tonight, bringing the total to 80. As of right now, First Coweta of Georgia and CapitalSouth Bank of Alabama were also shuttered tonight.
Bank______________Assets________________Deposits
Guaranty Bank______$13B________________$12B
eBank_____________$143M_______________$130M
CapitalSouth Bank___$617M_______________$546M
First Coweta________$167M_______________$155M
Total estimated losses for the FDIC: $3.262 Billion
Total loss-share agreements with the FDIC: $734 million
The West Coast still has an hour to go before banks close, so there probably will be more shortly. Below is the summary of the FDIC press releases.
Guaranty Bank:
As of June 30, 2009, Guaranty Bank had total assets of approximately $13 billion and total deposits of approximately $12 billion. In addition to assuming all of the deposits of the failed bank, BBVA Compass agreed to purchase $12 billion of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and BBVA Compass entered into a loss-share transaction on approximately $11 billion of Guaranty Bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3 billion.
CapitalSouth Bank:
CapitalSouth Bank, Birmingham, Alabama, was closed today by the Alabama State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all of the deposits of CapitalSouth Bank, excluding those from brokers.
As of June 30, 2009, CapitalSouth Bank had total assets of $617 million and total deposits of approximately $546 million. In addition to assuming all of the deposits of the failed bank, IBERIABANK agreed to purchase $589 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and IBERIABANK entered into a loss-share transaction on approximately $499 million of CapitalSouth Bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $151 million.
First Coweta:
First Coweta, Newnan, Georgia was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all of the deposits of First Coweta, excluding those from brokers.
As of July 31, 2009, First Coweta had total assets of $167 million and total deposits of approximately $155 million. United Bank will pay the FDIC a premium of 1.01 percent to assume all of the deposits of First Coweta. In addition to assuming all of the deposits of the failed bank, United Bank agreed to purchase $155 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and United Bank entered into a loss-share transaction on approximately $124 million of First Coweta’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $48 million.
eBank:
ebank, Atlanta, Georgia, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of ebank.
As of July 10, 2009, ebank had total assets of $143 million and total deposits of approximately $130 million. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase essentially all of the failed bank’s assets.
The FDIC and Stearns Bank, N.A. entered into a loss-share transaction on approximately $111 million of ebank’s assets. Stearns Bank, N.A. will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $63 million. Stearns Bank, N.A.’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. ebank is the 78th FDIC-insured institution to fail in the nation this year, and the seventeenth in Georgia. The last FDIC-insured institution closed in the state was Security Bank of Jones County, Gray, on July 24, 2009.
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