FDIC closes 4 more U.S. banks to bring the 2009 total to 44

June 28, 2009 by · Leave a Comment
Filed under: Bank Failure 

And more to come.  Many loans are going into default and that puts stress on the banks to raise their reserves to they are within federal and state guidelines for capital reserves ratios to deposits.

News (Reuters):

U.S. regulators closed four small banks on Friday — two in Georgia, one in Minnesota and one in California, bringing the total of U.S. bank failures to 44 this year.

The Federal Deposit Insurance Corp said the closings were:

— Community Bank of West Georgia, a small bank in Villa Rica, Georgia, with assets of $199.4 million and total deposits of $182.5 million, as of May 15. A buyer could not be found, so the FDIC was appointed as receiver and will mail checks to insured depositors for their insured funds on June 29.

— Neighborhood Community Bank, of Newnan, Georgia, with $221.6 million in assets and $191.3 million in deposits, as of March 31. CharterBank, of West Point, Georgia, agreed to assume the insured deposits and $209.6 million of the assets. Neighborhood’s four offices will reopen as CharterBank branches.

— Horizon Bank, of Pine City, Minnesota, with $87.6 million in assets and $69.4 million in deposits as of March 31. Stearns Bank, NA, of St Cloud, Minnesota, agreed to assume all of Horizon’s deposits and to buy $84.4 million of its assets. Horizon’s two offices will reopen on Saturday as Stearns branches.

— MetroPacific Bank, of Irvine, California, with $80 million in assets and $73 million in deposits, as of June 8. Sunwest Bank, of Tustin, California, agreed to assume all of the deposits, excluding those from brokers, and virtually all of MetroPacific’s assets. MetroPacific’s sole office will reopen on Monday as a branch of Sunwest Bank.

New Frontier Bank seized by the FDIC to become the 23rd bank failure of 2009

April 13, 2009 by · Leave a Comment
Filed under: Bank Failure 

Another bites the dust.  New Frontier was a little bigger than the most we have seen this year at $2 billion in assets and $1.5 billion in bank deposits.  This trend will continue sadly and we will see the local and regional banks take the brunt of these while we bailout national banks that have lost literally trillions of dollars.  They are just too connect in too many ways and this is the reality we are dealing with.

News (Reuters):

U.S. regulators on Friday closed New Frontier Bank of Greeley, Colorado, and set up a temporary bank so depositors can open accounts at other insured institutions.

The Federal Deposit Insurance Corp said it immediately transferred New Frontier’s insured deposits to the Deposit Insurance National Bank of Greeley (DINB), except for brokered deposits, certificates of deposit and individual retirement accounts.

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Omni National Bank is the 21st bank failure of 2009

March 27, 2009 by · Leave a Comment
Filed under: Bank Failure 

They went under with almost $1 billion in assets.  They must of  had a lot of bad loans and other assets on their books for the FDIC to come in and shut them down.  I wish they would be more open about what the “unsound” practices they were using so the public could be more educated.

News (Reuters):

Georgia-based Omni National Bank was seized on Friday and placed into receivership under the Federal Deposit Insurance Corp, the U.S. government said on Friday.

The bank had about $980 million in assets at the end of 2008, the Office of the Comptroller of the Currency said in a statement.

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U.S. problem banks rise to 171 at end of third quarter

November 25, 2008 by · Leave a Comment
Filed under: Bank Failure 

That is quite a leap from 117 during this period of unprecedented bailing out of all sorts of financial institutions.  


The number of problem U.S. banks and thrifts jumped in the third quarter to 171, from 117 at the end of the prior quarter, marking the highest level since the end of 1995 and adding to expectations that more banks will fail, regulators said on Tuesday.

Source: Reuters

Freedom Bank of Florida is the 17th U.S. bank failure of the year

November 1, 2008 by · Leave a Comment
Filed under: Bank Failure 

Almost like clockwork that we see a bank failure at the closing of the day on Friday.  Freedom Bank of FL has been shut down by the FDIC.  At the time of the closing they had $254 million dollars in deposits.  These customer deposits have been purchased by the Fifth Third Bank.  Of the $287 millon in assets, Fifth Third will purchase only $32 millon of them and the FDIC will be retaining the rest.

FDIC Release:

Freedom Bank, Bradenton, Florida, was closed today by the Commissioner of the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Fifth Third Bank, Grand Rapids, Michigan, to assume all of the deposits of Freedom Bank.

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