Friday closure banks 2010

[mattduke]

The FDIC account holder bailout rate is higher in 2010 than 2009 so far. FDIC is bankrupt. Where do the dollars come from?

[kmann]

The FDIC account holder bailout rate is higher in 2010 than 2009 so far. FDIC is bankrupt. Where do the dollars come from?

By number of banks we are ahead of last year. By cost to the DIF we are slightly ahead of last year. Neither is of these is unexpected, peak bank failures is a lagging economic indicator. The FDIC is not bankrupt, it pre-charged banks to rebuild the DIF. The dollars come from the banks in the form of fees to the FDIC.

[eXpat]

Those green shoots are getting greener!!! 7 Banks today:
-Frontier Bank
-BC National Banks
-Champion Bank
-CF Bancorp
-Westernbank Puerto Rico
-R-G Premier Bank of Puerto Rico
-Eurobank
Regulators close banks in Puerto Rico, Mich., Mo.

WASHINGTON — Regulators on Friday shut down three banks in Puerto Rico, two in Missouri and one in Michigan, bringing the number of U.S. bank failures this year to 63.

The Federal Deposit Insurance Corp. took over the banks: Westernbank Puerto Rico, based in Mayaguez, with about $11.9 billion in assets; R-G Premier Bank of Puerto Rico, based in Hato Rey, with around $5.9 billion in assets; and San Juan-based Eurobank, with $2.5 billion in assets.

The FDIC also seized CF Bancorp, based in Port Huron, Mich., with about $1.6 billion in assets; Champion Bank, of Creve Coeur, Mo., with $187.3 million in assets; and BC National Banks, of Butler, Mo., with $67.2 million in assets.

Banco Popular de Puerto Rico agreed to acquire Westernbank's deposits and about $9.4 billion of its assets. The FDIC will keep the remainder for eventual sale. Scotiabank de Puerto Rico agreed to buy all the assets and deposits of R-G Premier Bank. And Oriental Bank and Trust is acquiring all the assets and deposits of Eurobank. The three healthier acquiring banks are based in San Juan, the Puerto Rican capital.

The three failed banks together held more than one-fifth of the total bank assets on the U.S. Caribbean territory. They had struggled to stay afloat during Puerto Rico's grinding, four-year recession.

It was Puerto Rico's largest bank consolidation in more than two decades as well as one of the FDIC's biggest resolutions of failed banks in the financial crisis that struck in fall 2008.

In addition, the FDIC and Banco Popular agreed to share losses on $8.8 billion of Westernbank's loans and other assets. The agency and Scotiabank agreed to share losses on $5.4 billion of R-G Premier Bank's assets, while the FDIC and Oriental Bank and Trust are to share losses on $1.6 billion of Eurobank's assets.

The failure of Westernbank is expected to cost the deposit insurance fund $3.3 billion; the failure of R-G Premier Bank is expected to cost $1.2 billion; that of Eurobank, $743.9 million.

First Michigan Bank, based in Troy, Mich., agreed to assume the deposits and about $870 million of the assets of CF Bancorp. BankLiberty, based in Liberty, Mo., agreed to acquire the deposits and $152.6 million of the assets of Champion Bank, while Community First Bank of Butler, Mo., is acquiring all the assets and deposits of BC National Banks.

In addition, the FDIC and First Michigan Bank agreed to share losses on $808.1 million of CF Bancorp's assets. The agency and BankLiberty agreed to share losses on $113.5 million of Champion Bank's assets, while the FDIC and Community First Bank are to share losses on $37.9 million of BC National Banks' assets.

The failure of CF Bancorp is expected to cost the deposit insurance fund $615.3 million; the failure of Champion Bank is expected to cost $52.7 million; that of BC National Banks, $11.4 million.

http://www.google.com/hostednews/ap/article/ALeqM5gg9RS-ZvzlfzrcnujKaEDMXrYyYgD9FDN5380

[kmann]

Cost to the DIF this week: $7.2 billion
ytd: $16 billion
Wow, and I was starting to get bored by the FDIC friday press releases. Hope we don't get too many days like this!

[jdmartin]

Still glad to see the page being updated - well, not glad about bank failures, but glad I can get good information here.

[eXpat]

4 Today
-1st Pacific Bank of California, San Diego, CA
-Towne Bank of Arizona Mesa, AZ
-Access Bank, Champlin
-The Bank of Bonifay
http://www.fdic.gov/bank/individual/failed/banklist.html
http://www.google.com/hostednews/ap/article/ALeqM5gg9RS-ZvzlfzrcnujKaEDMXrYyYgD9FI9VM80

[FloridaGirl]

So we had about $25.6 Billion of bank failures last week. Leading up to that we had $6+ Billion of failures each of the previous 2 weeks. So we've had almost $39 Billion of bank failures in the last month which is the equivalent of a Bear Sterns failure. Yet there is nothing about this in the news. Consider how much the Bear Sterns failure was in the news.

I'd say that this should be big news and they are slipping it under the shadow of all the other big news occurring now.

[Gerben]

So we had about $25.6 Billion of bank failures last week.

Where did you get that number?

[FloridaGirl]

Where did you get that number?

www.fdic.gov

Frontier Bank $ 3.5 Billion
BC National Banks $ 0.067 Billion
Champion Bank $ 0.187 Billion
CF Bancorp $ 1.65 Billion
Westernbank $11.94 Billion
R-G Premier Bank $ 5.92 Billion
Eurobank $ 1.97 Billion

OK, now I get $25.2 Billion. Still a big number

[eXpat]

So we had about $25.6 Billion of bank failures last week. Leading up to that we had $6+ Billion of failures each of the previous 2 weeks. So we've had almost $39 Billion of bank failures in the last month which is the equivalent of a Bear Sterns failure. Yet there is nothing about this in the news. Consider how much the Bear Sterns failure was in the news.

I'd say that this should be big news and they are slipping it under the shadow of all the other big news occurring now.

Because public has been "immunized" against this kind of news after 2008. And is monopoly money anyway, It was impossible for the institutions to made up for the losses 2 years ago, and is even more impossible now. Is all about holding BAU for as long as possible.

[Gerben]

Where did you get that number?

http://www.fdic.gov

Frontier Bank $ 3.5 Billion
BC National Banks $ 0.067 Billion
Champion Bank $ 0.187 Billion
CF Bancorp $ 1.65 Billion
Westernbank $11.94 Billion
R-G Premier Bank $ 5.92 Billion
Eurobank $ 1.97 Billion

OK, now I get $25.2 Billion. Still a big number

Ah, that's the assets of the banks that failed, not the cost to the FDIC. Assets are not a good measure to determine the size of a failure. Next time before a bank failes they should give me the assets, so the failure is not so big.

[VMarcHart]

I got kicked out of this thread again.

[jdmartin]

As usual, nothing to be found in the news on this. Had no idea 4 more banks went down.

[FloridaGirl]

Ah, that's the assets of the banks that failed, not the cost to the FDIC. Assets are not a good measure to determine the size of a failure. Next time before a bank failes they should give me the assets, so the failure is not so big.

Where did you get that number?

http://www.fdic.gov

Frontier Bank $ 3.5 Billion
BC National Banks $ 0.067 Billion
Champion Bank $ 0.187 Billion
CF Bancorp $ 1.65 Billion
Westernbank $11.94 Billion
R-G Premier Bank $ 5.92 Billion
Eurobank $ 1.97 Billion

OK, now I get $25.2 Billion. Still a big number

Ah, that's the assets of the banks that failed, not the cost to the FDIC. Assets are not a good measure to determine the size of a failure. Next time before a bank failes they should give me the assets, so the failure is not so big.

For banks, the assets that they own are largely loans. The FDIC provides an estimated cost for the failed bank. Because the "Mark-to-Market" accounting rule was dropped last year, the FDIC cannot tell what the true health of the bank is. So I would bet that the estimate is a lower bound.

Also consider that many recent second mortgages or lines of credit are worthless.

I started to say that the assets are an upper bound, then I remembered about derivatives. For example, an OCC 4th Quarter 2009 report (http://www.occ.treas.gov/ftp/release/2010-33a.pdf) states that Bank of America has $1465 Billion in assets yet they have $44 Trillion in derivatives. Consider that just a 10% loss in its derivatives could render Bank of America so negative that it is "Too Big to Save".

[eXpat]

This is going to leave a dent
Midwest Banc Holdings likely to fail Friday

SAN FRANCISCO (MarketWatch) -- Midwest Banc Holdings Inc. /quotes/comstock/15*!mbhi/quotes/nls/mbhi (MBHI 0.13, -0.09, -41.86%) will likely fail and be placed into Federal Deposit Insurance Corp. receivership late Friday because of undercapitalization, according to a Securities and Exchange Commission filing Thursday from the bank holding company. The bank, which has $3.18 billion in assets and $2.42 billion in deposits, said that the Federal Reserve Bank rejected its capital plan March 25 and that it does not expect to reach capital requirements by the May 13 Prompt Corrective Action Directive deadline. Shares of Midwest Bank fell 2.3% to 21 cents a share in after-hours activity following a 17.3% decline on the day

http://www.marketwatch.com/story/midwest-banc-holdings-likely-to-fail-friday-2010-05-13

[eXpat]

4 today
-Midwest Bank and Trust Company
-Southwest Community Bank
-New Liberty Bank
-Satilla Community Bank
http://www.fdic.gov/bank/individual/failed/banklist.html
Regulators shut 4 banks; 72 have failed this year

WASHINGTON — Regulators on Friday shut down Midwest Bank and Trust Company in Elmwood Park, Ill., as well as three smaller banks in Georgia, Michigan and Missouri to bring the number of U.S. bank failures this year to 72.

The Federal Deposit Insurance Corp. took over Midwest Bank and Trust, which had about $2.4 billion in deposits and $3.2 billion in assets.

FirstMerit Bank, N.A., of Akron, Ohio, agreed to assume all the deposits of Midwest Bank and Trust and essentially all the assets.

Midwest Bank and Trust had 23 branches. FirstMerit is a division of FirstMerit Corp. According to its Web site, FirstMerit Bank has 186 offices in Ohio, Pennsylvania and Illinois.

The FDIC and Firstmerit Bank agreed to share losses on about $2.3 billion of Midwest Bank and Trust assets. The move is expected to cost the deposit insurance fund about $216.4 million.

The other banks the FDIC took over were:

_ New Liberty Bank, based in Plymouth, Mich. The bank had about $101.8 million in deposits and $109.1 million in assets. Bank of Ann Arbor in Ann Arbor, Mich., agreed to acquire the deposits and nearly all of its assets. New Liberty Bank had one branch.

_ Southwest Community Bank, based in Springfield, Mo. It had deposits of about $102.5 million and $96.6 million in assets. Simmons First National Bank of Pine Bluff, Ark., will acquire the deposits of Southwest Community Bank and essentially all of its assets. Southwest Community Bank had one branch.

_ Satilla Community Bank, based in Saint Marys, Ga. It had about $134 million in deposits and $135.7 million in assets. Ameris Bank, based in Moultrie, Ga., agreed to acquire the bank's deposits and nearly all of its assets. Satilla Community Bank had one branch.

http://www.google.com/hostednews/ap/article/ALeqM5gg9RS-ZvzlfzrcnujKaEDMXrYyYgD9FMUC0G0

[VMarcHart]

Thanks for the report, eX. I wish that chart on the previous page was updated.

[mattduke]

Thanks for the report, eX. I wish that chart on the previous page was updated.

Not up to the minute, but more-recent.

[GoghGoner]

From CNN Money:

BREAKING NEWS
FDIC says number of troubled banks in first quarter rises to 775 -- a nearly 20-year high.

[jdmartin]

Wonder what tomorrow's number will look like - any predictions? 1? 5? 10?