There it is, The Big One

Posted by Ray on August 21, 2009 under FDIC, Main | Be the First to Comment

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.