What can I say, they are coming fast and furious tonight.
It’s a blockbuster, 106 banks now closed! 1 more just crossed the wire. Partners Bank in Naples Florida , American United Bank, Lawrenceville GA, Hillcrest Bank Florida, Naples FL, Flagship National Bank, Bradenton FL, Bank of Elmwood, Racine WI, Riverview Community Bank, of Otsego MN, and First Dupage Bank, Westmont Il, failed today, and there might be more later so check back, it is only 6:11 EST and West coast does not report until after 9 PM EST.
Bank
State
Assets
Deposits
Partners Bank
FL
$65M
$64.9M
American United Bank
GA
$111M
$101M
Hillcrest Bank FL
FL
$83M
$84M
Flagship National Bank
FL
$190M
$175M
Bank of Elmwood
WI
$327M
$273.2M
Riverview Community
MN
$108M
$80M
First Dupage Bank
IL
$279M
$245M
Total
7 Banks
$1,163M
$1,023.1M
The Partners Bank FDIC losses are estimated to be $28.6M from this closure. There was no loss-share agreement reported with Stonegate Bank, the acquiring bank.
The American United Bank FDIC losses are estimated to be $44M. The FDIC did enter a loss-share agreement with Ameris Bank, the acquirer, for $92M.
The Hillcrest Bank Florida FDIC losses are estimated to be $45M. There is no loss-share agreement with Stonegate, the acquiring bank, who only agreed to purchase $28M in assets from Hillcrest, the FDIC will retain all other assets.
The Flagship National Bank FDIC losses are estimated to be $59M. The FDIC entered into a loss-share agreement with First Federal Bank of Florida, the acquiring bank, for $130M.
The Bank of Elmwood FDIC losses are estimated to be $101.1M. No loss-share was reported, but Tri-City National Bank agreed to buy “essentially” all of the assets of Elmwood.
The Riverview Community Bank FDIC losses are estimated to cost the FDIC $20M. The FDIC did enter a loss-share agreement with Central Bank, the acquiring bank, for $75M.
The First Dupage Bank FDIC losses are estimated to cost $59M. The FDIC did enter a loss-share agreement with First Midwest Bank, the acquiring bank, for $247M.
The losses the FDIC will realize from this weeks closures are pretty severe, especially since we had that 2 week break in bank closures. At this rate there is no way the extra $45B raised by the 3 year front load of bank fees will cover the potential losses from bank failures. The FDIC likes to make the claim that over 800 banks failed during the S&L problem in the 1980′s, but there is no real comparison considering those banks were so much smaller and insignificant versus the banks failing today. Regardless of that basic fact, some experts say we will suffer more than 1,000 bank closures over the next few years which is worse than the S&L crisis. Not to mention that when Georgian Bank closed it was not even ON the troubled bank list the FDIC is keeping, so there are plenty of surprises to be had.
This weeks FDIC immediate and potential losses:
Estimated Immediate Losses
$356.7M
Loss-Share Agreements
$616.6M
Totals
$973.3M
Parnters Bank:
Partners Bank, Naples, Florida, 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 Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Partners Bank.
The two branches of Partners Bank will reopen on Monday as branches of Stonegate Bank. Depositors of Partners Bank will automatically become depositors of Stonegate 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 they receive notice from Stonegate Bank that it has completed systems changes to allow other Stonegate Bank branches to process their accounts as well.
American United Bank:
American United Bank, Lawrenceville, Georgia, was closed today by the Georgia Department of Banking & 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 Ameris Bank, Moultrie, Georgia, to assume all of the deposits of American United Bank.
The sole branch of American United Bank will reopen on Monday as a branch of Ameris Bank. Depositors of American United Bank will automatically become depositors of Ameris 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 they receive notice from Ameris Bank that it has completed systems changes to allow other Ameris Bank branches to process their accounts as well.
Hillcrest Bank Florida:
Hillcrest Bank Florida, Naples, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Hillcrest Bank Florida.
The six branches of Hillcrest Bank Florida will reopen on Monday as branches of Stonegate Bank. Depositors of Hillcrest Bank Florida will automatically become depositors of Stonegate 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 Stonegate Bank can fully integrate the deposit records of Hillcrest Bank Florida.
Flagship National Bank:
Flagship National Bank, Bradenton, Florida, 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 First Federal Bank of Florida, Lake City, Florida, to assume all of the deposits of Flagship National Bank.
The four branches of Flagship National Bank will reopen on Monday as branches of First Federal Bank of Florida. Depositors of Flagship National Bank will automatically become depositors of First Federal Bank of Florida. 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 they receive notice from First Federal Bank of Florida that it has completed systems changes to allow other First Federal Bank of Florida branches to process their accounts as well.
Bank of Elmwood:
Bank of Elmwood, Racine, Wisconsin, was closed today by the Wisconsin 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 Tri City National Bank, Oak Creek, Wisconsin, to assume all of the deposits of Bank of Elmwood.
The five branches of Bank of Elmwood will reopen on Saturday as branches of Tri City National Bank. Depositors of Bank of Elmwood will automatically become depositors of Tri City National 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 Tri City National Bank can fully integrate the deposit records of Bank of Elmwood.
Riverview Community Bank:
Riverview Community Bank, Otsego, 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 Riverview Community Bank.
The two branches of Riverview Community Bank will reopen on Saturday as branches of Central Bank. Depositors of Riverview Community 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 Riverview Community Bank.
First Dupage Bank:
First Dupage Bank, Westmont, Illinois, was closed today by the Illinois Department of Financial & Professional Regulation – Division of Banking, 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 Midwest Bank, Itasca, Illinois, to assume all of the deposits of First Dupage Bank.
The sole branch of First Dupage Bank will reopen on Saturday as a branch of First Midwest Bank. Depositors of First Dupage Bank will automatically become depositors of First Midwest 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 First Midwest Bank can fully integrate the deposit records of First Dupage Bank.
It is funny that we are not hearing about this on the evening news or CNBC, but nothing really surprises me anymore. Those who read my work regularly know I speculated that the FDIC was basically broke, well, today they announced just that. As of September 30th, tomorrow, the FDIC is broke. This is why they are trying to raise money through making banks pay 3 years worth of premiums all at once.
Considering there are 416 banks on the FDIC “troubled” list I am sure we will see tens of billions more in failures. This leads me to believe that even the amount of money that the FDIC raises from its member banks will probably not be enough to cover the additional losses it will suffer. One also has to remember the infamous loss-share agreements which mean the acquiring bank has relatively no risk when it takes a failed bank over. I am sure these loss-share agreements will cost way more than the FDIC expects.
There is also the issue of the debt ceiling that we have to deal with as well. If we raise the debt ceiling we condemn our children and grandchildren to a life of indebtedness and if we do not we have to suffer the pain, I can handle the pain, can you? The economy is not getting better which also means another stimulus package is on its way as well, which is adding more debt to our problem. David Rosenberg it the nail on the head today when je said; “No one build more bridges, cemented more river beds, built more roads than Japan, but they could not break the deflationary spiral.” Bingo, we won’t break it that way either. In fact, the way we are going it will jump from inflation to rapid dollar devaluation, nice job Mr. Obama and Ms. Pelosi!
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.
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.
The FDIC reported that the First Bank of Kansas City was seized by the FDIC and sold to Great American Bank. Inbank, Vantus Bank, Platinum Community Bank and First State Bank were also closed which represents a total of 89 banks closed down this year.
First State Bank________AZ______________$105M____________$95M
The FDIC estimates a loss of $6 million for First Bank of Kansas.
The FDIC estimates the loss of $66 million for the closure of Inbank.
The FDIC estimates the loss of $168 million for the closure of Vantus Bank and entered into a loss-share agreement with the acquiring bank, Great Southern Bank, for $338 million.
The FDIC estimates the of $114M for the closure of Platinum Community Bank.
The FDIC estimates a loss of $47M for the closure of First State Bank.
Total losses and loss-share agreements are $739M this weekend. The balance sheet is officially a mess now.
First Bank of Kansas:
First Bank of Kansas City, Kansas City, Missouri, was closed today by the Missouri Division of 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 Great American Bank, De Soto, Kansas, to assume all of the deposits of First Bank of Kansas City.
The sole branch of First Bank of Kansas City will reopen on Saturday as a branch of Great American Bank. Depositors of First Bank of Kansas City will automatically become depositors of Great American 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 Great American Bank can fully integrate the deposit records of First Bank of Kansas City.
Inbank:
InBank, Oak Forest, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, Division of Banking, 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 InBank, except certain brokered deposits.
The three branches of InBank will reopen on Saturday as branches of MB Financial Bank, N.A. Depositors of InBank will automatically become depositors of MB Financial Bank, N.A. 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, N.A., can fully integrate the deposit records of InBank.
Vantus Bank:
Vantus Bank, Sioux City, Iowa, 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 Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Vantus Bank.
The 15 branches of Vantus Bank will reopen on Saturday with normal business hours as branches of Great Southern Bank. Depositors of Vantus Bank will automatically become depositors of Great Southern 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 Great Southern Bank can fully integrate the deposit records of Vantus Bank.
Platinum Community Bank:
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of Platinum Community Bank, Rolling Meadows, Illinois. The bank was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver.
The FDIC will mail customers checks for their insured funds on Tuesday, September 8. Platinum Community Bank, as of August 29, 2009, had total assets of $345.6 million and total deposits of $305.0 million.
The FDIC entered into an agreement with MB Financial Bank, National Association, to accept the failed bank’s direct deposits from the federal government, such as Social Security and Veterans’ payments. Customers must use MB Financial’s branch located at 2251 Plum Grove, Palatine, Illinois, to access their federal government direct deposits.
First State Bank:
First State Bank, Flagstaff, Arizona, was closed today by the Arizona 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 Sunwest Bank, Tustin, California, to assume all of the deposits of First State Bank.
Due to the Labor Day holiday, the six branches of First State Bank will reopen on Tuesday as branches of Sunwest Bank. Depositors of First State Bank will automatically become depositors of Sunwest 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 Sunwest Bank can fully integrate the deposit records of First State Bank.
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