FDIC Regulators Close 4 Banks

Regulators closed four more banks on Friday, seizing their assets and deposits and placing them with other financial institutions.

Two of the four failed banks were absorbed by companies that had received taxpayer capital through the $700 billion Troubled Asset Relief Program.

The banks were in Florida, Michigan, Wisconsin and California, cutting a new, $145 million hole in the Federal Deposit Insurance Corporation (FDIC) fund as the credit crunch continues to claim victims. They had earlier been reported here on the Unofficial Problem Bank List.

The FDIC reported the following bank closings:


Port Orange, Florida's Sunshine State Community Bank, which had $116.7 million in deposits as of December 31 was closed. The bank’s failure will cost the deposit-insurance fund $30 million, the FDIC said.

Troy, Michigan's Peoples State Bank was also closed. The bank had $389.9 million in deposits as of December 31 and its failure will cost the deposit-insurance fund $87.4 million.


Cassville, Wisconsin's Badger State Bank, which had $78.5 million in deposits, was closed. Badger State Bank’s failure will cost the deposit-insurance fund $17.5 million.

Palm Springs, California's Canyon National Bank was closed. Canyon National Bank had $205.3 million in deposits as of December 31 and its failure will cost the deposit-insurance fund $10 million.

 

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Posted on February 12, 2011 11:10 by Tom Herod
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Bad Bank List Increases To 949 Institutions

Bad Bank!

The Unofficial Problem Bank List for Jan 28, 2011.

Not the safest week in banking as the FDIC released its formal enforcement actions for December 2010 and closed four institutions including the largest bank headquartered in New Mexico. This week there were 15 additions and three removals. The changes leave the Unofficial Problem Bank List at 949 institutions with assets of $410.9 billion, up from 937 institutions with assets of $409.4 billion.

The removals include three of the four failures -- First Community Bank, Taos, NM ($2.3 billion Ticker: FSNM); Firstier Bank, Louisville, CO ($782 million); and Evergreen State Bank, Stoughton, WI ($246 million). The other failure this week -- The First State Bank, Camargo, OK was only placed under enforcement action in December 2010 (35 days before it failed) by the FDIC so it never made an appearance on the Unofficial Problem Bank List.

Among the 13 additions are First Federal Savings Bank of Elizabethtown, Elizabethtown, KY ($1.2 billion Ticker: FFKY); The Heritage Bank, Hinesville, GA ($952 million); First American International Bank, Brooklyn, NY ($604 million); Park Federal Savings Bank, Chicago, IL ($216 million Ticker: PFED); and Premier Service Bank, Riverside, CA ($157 million Ticker: PSBK).

Other changes include the issuance of Prompt Corrective Action orders by the FDIC against The Bank of Commerce, Wood Dale, Il ($174 million) and the Federal Reserve against Virginia Business Bank, Richmond, VA ($129 million). Positively, the FDIC terminated the PCA order against AmericanWest Bank, Spokane, WA ($1.5 billion Ticker: AWBCQ).

After the monthly release of actions by the FDIC, it would not be unusual for the Unofficial Problem Bank List to trend down until the middle of next month as closings tend to outpace new order issuance during this part of the month. Overall, if trends persist, the list could hit CR's anticipated [1000] mark by the end of May 2011.

Here is the Unofficial Problem Bank List for Jan 28, 2011.
 

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Posted on January 29, 2011 15:50 by Tom Herod
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