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.
Subscribe to Annuity IQ's Feed
LS Blogs
Sphere: Related Content
Posted by Ray on September 4, 2009 under Main |
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.
Bank________________State___________Assets____________Deposits
First Bank of Kansas_____MO____________$16M_____________$15M
Inbank________________IL______________$212M____________$199M
Vantus Bank___________IA______________$458M____________$368M
Platinum Community____IL______________$345M____________$305M
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.
Subscribe to Annuity IQ's Feed
LS Blogs
Sphere: Related Content
Posted by Ray on August 26, 2009 under Main |
With 81 banks closed this year and estimates of a total of 150-200 bank closures in the near future it is no wonder that the FDIC eased rules for private equity firms to bid on the failed institutions. It is amazing that it took so long for the FDIC to make this decision, considering the firm has had to cover significant losses this year. By allowing private equity firms it also elevates another problem, finding buyers for the closed banks.
Most of the 81 banks closed this year were smaller institutions, but this recent action by the FDIC leads me to believe that bigger banks will begin to fail. Of course, there is no real way to know which banks are on the FDIC’s troubled institutions list, currently around 300 banks are on this list, which makes it difficult to know what size the potential failures could be. However, we do know that the current losses or loss-share agreements with this year’s closures has strained the balance sheet of the FDIC, roughly $28B YTD. Now, loss share agreements do not necessarily mean that the FDIC will actually have to pay up on the whole amount, but it certainly will have to cover some of those losses.
Either way, the FDIC had to make some decisions to shield itself, in my opinion, because the losses, over $3B last week alone, are becoming horrendous. Not only that, but buyers will be tougher to find as the bigger institutions, like JP Morgan and Bank of America, are unwilling or unable to buy these smaller operations. Smaller banks are certainly interested, but they may not have the capital to merge the institutions without substantial help from the FDIC, which kind of defeats the purpose of finding a buyer. Keep in mind, the FDIC needed to raise premiums from its bigger banks in order to shore up its balance sheet, but that will not be enough according to some reports.
However, with private equity firms there is now ample capital to absorb these smaller banks. I am not sure if this is a good idea or just an idea out of necessity, but it passed and now we will certainly see firms like Bain Capital, Carlyle Group, etc. now owning banks. Whether they have a genuine interest in running the troubled institutions, who really knows, but what is certain is this move will help the FDIC, maybe.
Private equity firms are not dumb people, obviously, and if they acquire a bank then they will want some type of loss-share agreement and may decide to not buy certain assets of the banks. In itself that is not that big of a deal, but since these firms are not banking institutions to begin with it is likely that they will drive a harder bargain to get the deal done, especially if there is not another traditional bidder in the picture. It is possible that the FDIC could have to guarantee against more losses than typical bank failures, but only time will tell.
What we know for sure is that the failures will increase dramatically in the next few months. I will continue to monitor the failures every Friday night and provide you with a running total of bank closures, where they were located, the asset base, deposit base and the estimated losses the FDIC may incur. So be sure to check back at 6:30 EST on Fridays for closures on the East coast and 9:30 for West coast closures.
Subscribe to Annuity IQ's Feed
LS Blogs
Sphere: Related Content
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.
Subscribe to Annuity IQ's Feed
LS Blogs
Sphere: Related Content
Posted by Ray on under FDIC, Main |
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
eBank_____________$143M_______________$130M
CapitalSouth Bank___$617M_______________$546M
First Coweta________$167M_______________$155M
Total estimated losses for the FDIC: $262 million
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.
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.
Subscribe to Annuity IQ's Feed
LS Blogs
Sphere: Related Content
