No Failures Expected Today

Despite the hundreds of bank failures each year since 2008, there have never been any banks closed in the last two weeks of the year.  As a result, the Bank Blog does not expect there to be any regulatory actions taken against banks today.

No New Failures

Leading into the federal holidays, there have been no bank closures as of 6:05 pm EST.

First Failures in Four Weeks

After an unprecedented calm in the storm of failed banks, regulators have shut down two banks this week.  The first bank to fail in December was the 18th ranked Premier Community Bank of the Emerald Coast headquartered in Crestview, Florida. Summit Bank, National Association (5994th) of Panama City, Florida has agreed to assume all of the deposits of Premier Community Bank of the Emerald Coast. Premier Community Bank had approximately $126.0 million in total assets and $112.1 million in total deposits. The FDIC and Summit Bank, National Association entered into a loss-share transaction on $98.0 million of Premier Community Bank of the Emerald Coast's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.2 million.

The second bank to fail this week was 12th ranked Western National Bank of Phoenix, Arizona.  Western National Bank was acquired by Washington Federal of Seattle, Washington. As of September 30, 2011, Western National Bank had approximately $162.9 million in total assets and $144.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, Washington Federal agreed to purchase essentially all of the assets. The estimated cost to the DIF will be $37.6 million.

December Top 40

Each quarter The Bank Blog releases a new Top 40 ranking based on the most recent data available from various sources. The current version of the list should be viewed as preliminary, however, as technical changes to the data and other refinements often require minor updates.

In a shortened quarter The Bank Blog's continue to highlight the least stable U.S. Banks was well demonstrated. Of the 40 banks listed, 11 failed. Of the surviving 29 banks, 24 remain on the updated list. The Bank Blog would like to caution our readers not to infer that those banks leaving the list are now safe. Four of those five banks continue to rank among the weakest 110 banks.  The final bank, First Security Bank of Nevada has received a capital infusion of $14 million and now ranks among the most sound banks. In all, banks that are or have been ranked on prior lists that have not failed still remain in the top 1.5% in terms of risk.

Returning banks are listed in bold and newly failed banks are listed in italics.

1. GREYSTONE BANK of RALEIGH, NC
2. PISGAH COMMUNITY BANK of ASHEVILLE, NC
3. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
4. BANK OF LAS VEGAS of LAS VEGAS, NV
5. FIRST CAPITAL BANK of GUTHRIE, OK 
6. CENTRAL FLORIDA STATE BANK OF BELLEVIEW, FL
7. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
8. CENTRUST BANK, NATIONAL ASSOCIATION of NORTHBROOK, IL
9. SECURITY BANK, N.A. of NORTH LAUDERDALE, FL
10. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
11. OPTIMUMBANK of PLANTATION, FL
12. WESTERN NATIONAL BANK of PHOENIX, AZ
13. THE FIRST STATE BANK of STOCKBRIDGE, GA
14. TENNESSEE COMMERCE BANK of FRANKLIN, TN
15. SUNRISE BANK of VALDOSTA, GA
16. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
17 PALM DESERT NATIONAL BANK of PALM DESERT, CA
18 PREMIER COMMUNITY BANK of THE EMERALD CO of CRESTVIEW, FL
19. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
20. PREMIER BANK of WILMETTE IL
21. NEW CITY BANK of CHICAGO IL
22. AMERICAN METRO BANK of CHICAGO IL
23. U.S. CENTURY BANK of MIAMI FL
24. BANK OF NAPLES of NAPLES, FL
25. HARVEST BANK OF MARYLAND of ROCKVILLE, MD
26. MONTGOMERY BANK & TRUST of AILEY, GA
27. DOUGLAS COUNTY BANK of DOUGLASVILLE, GA
28. ROCKY MOUNTAIN BANK of WILSON, WY
29. GEORGIA TRUST BANK of BUFORD, GA
30. DUPAGE NATIONAL BANK of WEST CHICAGO
31. FIDELITY BANK of FLORIDA, N.A. of MERRITT ISLAND, FL
32. THE LEADERS BANK of OAK BROOK, IL
33. TRUMAN BANK of SAINT LOUIS MO
34. COVENANT BANK & TRUST of ROCK SPRING GA
35. HOMETOWN NATIONAL BANK of LONGVIEW WA
36. SOUTHERN COMMERCE BANK, N.A. of TAMPA, FL
37. AMERICAN ENTERPRISE BANK of BUFFALO GROVE IL
38. PATRIOT BANK MINNESOTA of FOREST LAKE MN
39. SUNRISE BANK OF ARIZONA of PHOENIX AZ
40. IDAHO BANKING COMPANY of BOISE ID

Disclaimer:

The content of this web site is for general information purposes only and does not constitute advice. The author tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors should not act upon content or information without first seeking appropriate professional advice.

The author accepts no responsibility for and excludes all liability in connection with browsing this Web site, use of information or downloading any materials from it, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements. The information at this Web site might include opinions or views which, unless expressly stated otherwise, are not necessarily those of the author.

All content and information might be changed or updated without notice.

Thanksgiving Holiday

Traditionally, regulators seem to take this week off from closing banks.

Two New Failures

58th ranked Central Progressive Bank of Lacombe, Louisiana, was closed today and acquired by First NBC Bank, of New Orleans, Louisiana. Central Progressive Bank had approximately $383.1 million in total assets and $347.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, First NBC Bank (2343rd) agreed to purchase approximately $354.4 million of the failed bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.1 million.


147th ranked Polk County Bank of Johnston, Iowa, was closed today and acquired by Grinnell State Bank (5415th) of Grinnell, Iowa. Grinnell State Bank obtained approximately $91.6 million in total assets and $82.0 million in total deposits. The FDIC estimates that the cost to the DIF will be $12.0 million.

One Small Failure

With a shortened week due to Veteran's Day, 98th ranked Community Bank of Rockmart of Rockmart, Georgia, was closed yesterday by authorities. It was acquired by Century Bank of Georgia (1760th) of Cartersville, Georgia. Community Bank of Rockmart had approximately $62.4 million in total assets and $55.9 million in total deposits, although only $40.7 million of the failed bank's assets were acquired. The FDIC will retain the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.5 million.

Another Top Forty Failure

19th ranked Mid City Bank, Inc. of Omaha, Nebraska was closed today by regulators.  It was acquired by Purdum State Bank (5463rd) of Purdum, Nebraska which will be renaming itself Premier Bank.  The $20 million bank by assets will be growing significantly, taking over approximately $106.1 million in Mid City Bank's assets and $105.5 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $12.7 million.  

In additional news, 143rd ranked SunFirst Bank of Saint George, Utah, was also closed today.  to assume most of the deposits of SunFirst Bank. Cache Valley Bank (5635th) of Logan, Utah has acquired $177.3 million of the failed bank's assets and all but $15 million in deposits that are currently subject to litigation. The FDIC and Cache Valley Bank entered into a loss-share transaction on $128.9 million of SunFirst Bank's assets. The FDIC estimates that the cost to the DIF will be $49.7 million.

Number Eleven All American Bank Fails

11th ranked All American Bank of Des Plaines, Illinois failed today and was acquired by International Bank of Chicago (5644th) of Chicago, Illinois.  The small bank had assets of approximately $37.8 million and $33.4 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.5 million.

Another Top Ten Failed Bank

This week marks the fourth Top Ten Failure for the list as Old Harbor Bank of Clearwater, Florida and three other banks failed.  The tenth ranked bank was taken over by 1^st United Bank (3802nd) of Boca Raton, Florida.  This is the third failed bank acquisition for 1^st United Bank having previously acquired the Bank of Miami and Republic Federal Bank in 2010 and 2009 respectively. The $1.26 billion bank by assets will grow considerably from Old Harbor Bank's approximately $215.9 million in total assets and $217.8 million in total deposits. 1^st United Bank entered into a loss-share transaction on $155.6 million of these assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $39.3 million.

32nd ranked Community Banks of Colorado of Greenwood, Colorado failed today and was acquired by Bank Midwest, National Association (5715th) of Kansas City, Missouri. This was the second failed bank acquired by Bank Midwest, the former being the Bank of Choice in July. Considerably larger than most recent failures Community Banks of Colorado had approximately $1.38 billion in total assets and $1.33 billion in total deposits. The FDIC and Bank Midwest have entered into a loss-share transaction on $714.2 million of Community Banks of Colorado's assets at an estimated overall cost of $224.9 million.

57th ranked Community Capital Bank of Jonesboro, Georgia, was closed today and acquired by State Bank and Trust Company (582nd) of Macon, Georgia. State Bank and Trust Company has been a major acquirer of failed banks having snapped up 12 to date.  With this purchase, they added approximately $181.2 million in total assets and $166.2 million in total deposits.  A loss-share transaction covers $141.3 and the overall cost to the DIF is estimated at a relatively costly $62.0 million.

96th ranked Decatur First Bank of Decatur, Georgia also failed this week after struggling with low regulator capital and a lack of profitability. Fidelity Bank (1368th) of Atlanta, Georgia acquired the approximately $191.5 million in total assets and $179.2 million in total deposits of the failed bank. Their agreement with the FDIC includes a loss-share transaction on $111.5 million and is expected to cost the DIF $32.6 million.

Top Bank Fails Along with Three Others

In the most recent failure this week number one ranked Country Bank of Aledo, Illinois was closed by state regulators.  Blackhawk Bank & Trust (2714th) of Milan, Illinois agreed to purchase approximately $113.3 million of the failed bank's $190.6 million in assets and assumed approximately $167.5 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66.3 million. 

The first failure of the week belonged to 17th ranked Piedmont Community Bank of Gray, Georgia.  The approximately $201.7 million in total assets and $181.4 million in total deposits were taken over by State Bank and Trust Company (582nd)  of Macon, Georgia. As part of the acquisition, the FDIC and State Bank and Trust Company entered into a loss-share transaction on $163.2 million of Piedmont Community Bank's assets. The estimated cost to the DIF will be about $71.6 million.

34th ranked Blue Ridge Savings Bank, Inc. of Asheville, North Carolina also closed today. The Bank of North Carolina (617th) of Thomasville, North Carolina has agreed to take over the approximately $161.0 million in total assets and $158.7 million in total deposits of the former bank. The purchase agreement includes a loss-share transaction on $143.2 million of Blue Ridge Savings Bank, Inc.'s assets.  The estimated cost to the DIF is $38.0 million.

82nd ranked (not listed) First State Bank of Cranford, New Jersey was the third bank to fail this week. Northfield Bank (formerly OTS regulated and un-ranked) of Staten Island, New York, to assume all of the deposits of First State Bank. First State Bank had approximately $204.4 million in total assets and $201.2 million in total deposits as of its last financial disclosure. The estimated cost to the DIF is $45.8 million.

Of note, nine banks have failed since the current Top 40 list came out and seven of these have been listed banks.  It is also interesting to see that two of the acquirers this week are clearly less sound banks than has typically been the case in the past. 

Two Top 40 Failures This Week

The Bank Blog continues to highlight the least sound banks as two more from the most recent list failed today:

The 23rd ranked, The RiverBank of Wyoming, Minnesota, was closed today by the Minnesota Department of Commerce. Central Bank of Stillwater, Minnesota, to purchase the approximately $417.4 million in total assets of the former RiverBank and assumed the approximately $379.3 million in total deposits. In order to limit the risk to the acquirer, The FDIC and Central Bank entered into a loss-share transaction on $339.3 million of these assets under a loss-share agreement. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $71.4 million.

The 33rd ranked Sun Security Bank of Ellington, Missouri also failed this week. The bank's approximately $355.9 million in total assets and $290.4 million in total deposits were taken over by Great Southern Bank of Springfield, Missouri was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Essentially all of the assets of the former Sun Security Bank, $351.9 million, were assumed under loss-share transaction. The FDIC estimates that the cost to the DIF will be $118.3 million.

Another Top Ten Failure

Today, eight-ranked First International Bank of Plano, Texas, was closed today by the Texas Department of Banking. The approximately $239.9 million in total assets and $208.8 million in total deposits from First International Bank were taken over by American First National Bank (4021st) of Houston, Texas. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $53.8 million.

Ninth-Ranked Bank Fails

The ninth-ranked Bank of the Commonwealth has become the first Top 40 failure since the new list was published. The Norfolk, Virginia, based bank was acquired by Southern Bank and Trust Company (1650th) of Mount Olive, North Carolina. The Bank of the Commonwealth was one of the larger banks to fail in sometime. It had approximately $985.1 million in total assets and $901.8 million in total deposits. Southern Bank and Trust Company assumed all deposits. However, it acquired only $924.3 million of the failed bank's assets, with $798.2 million of those under a loss-share transaction. The cost to the FDIC's Deposit Insurance Fund (DIF) will be $268.3 million, a substantial figure for a bank of this size. Later this evening, 101st-ranked Citizens Bank of Northern California based in Nevada City, California, was closed by state regulators., to assume all of the deposits of Citizens Bank of Northern California.Tri Counties previously acquired failed Granite Community Bank, N.A. in May of 2010. The roughly $288.8 million in total assets a $253.1 million in total deposits were acquired by Tri Counties Bank of Chico (2101st), California. The estimated cost to the DIF will be $37.2 million.

No New Failures

There were no reported closures this week.

The September 2011 Top 40

Each quarter The Bank Blog releases a new Top 40 ranking based on the most recent data available from various sources. The current version of the list should be viewed as preliminary, however, as technical changes to the data and other refinements often require minor updates.

With the added month of feedback, The Bank Blog's accuracy was well demonstrated. Of the 41 banks listed in May (it turns out there were two firms ranked 11th), 18 failed. Of the surviving 23 banks, 20 remain on the updated list. The Bank Blog would like to caution our readers not to infer that those banks leaving the list are now safe. None of those banks are currently ranked below the mid 80s. In all, banks that are or have been ranked on prior lists that have not failed still remain in the top 1.5% in terms of risk.

Returning banks are listed in bold and newly failed banks are listed in italics.

1. COUNTRY BANK of ALEDO, IL
2. PISGAH COMMUNITY BANK of ASHEVILLE, NC
3. FIRST SECURITY BANK OF NEVADA of LAS VEGAS, NV
4. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
5. BANK OF LAS VEGAS of LAS VEGAS, NV
6. GREYSTONE BANK of RALEIGH, NC
7. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
8. FIRST INTERNATIONAL BANK of PLANO, TX  
9. BANK OF THE COMMONWEALTH of NORFOLK, VA  
10. OLD HARBOR BANK of CLEARWATER, FL
11. ALL AMERICAN BANK of DES PLAINES, IL
12. OPTIMUMBANK of PLANTATION, FL
13. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
14. SECURITY BANK, N.A. of NORTH LAUDERDALE, FL
15. CENTRUST BANK, NATIONAL ASSOCIATION of NORTHBROOK, IL
16. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
17. PIEDMONT COMMUNITY BANK of GRAY, GA
18. MONTGOMERY BANK & TRUST of AILEY, GA
19. SUNRISE BANK of VALDOSTA, GA
20. FIDELITY BANK OF FLORIDA, N.A. of MERRITT ISLAND, FL
21. DOUGLAS COUNTY BANK of DOUGLASVILLE, GA
22. HARVEST BANK OF MARYLAND of ROCKVILLE, MD
23. THE RIVERBANK of WYOMING, MN  
24. SOUTHERN COMMERCE BANK, N.A. of TAMPA, FL
25. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
26. BANK OF NAPLES of NAPLES, FL
27. WESTERN NATIONAL BANK of PHOENIX, AZ
28. FRIENDS BANK of NEW SMYRNA BEACH, FL
29. MID CITY BANK, INC. of OMAHA, NE
30. ROCKY MOUNTAIN BANK of WILSON, WY
31. THE FIRST STATE BANK of STOCKBRIDGE, GA
32. COMMUNITY BANKS OF COLORADO of GREENWOOD VILLAGE, CO
33. SUN SECURITY BANK of ELLINGTON, MO
34. BLUE RIDGE SAVINGS BANK, INC of ASHEVILLE, NC
35. BUILDERS BANK of CHICAGO, IL
36. GEORGIA TRUST BANK of BUFORD, GA
37. THE LEADERS BANK of OAK BROOK, IL
38. TRANSCAPITAL BANK of SUNRISE, FL
39. FIRST CAPITAL BANK of GUTHRIE, OK
40. VILLAGE BANK of SAINT FRANCIS, MN


Disclaimer:

The content of this web site is for general information purposes only and does not constitute advice. The author tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors should not act upon content or information without first seeking appropriate professional advice.

The author accepts no responsibility for and excludes all liability in connection with browsing this Web site, use of information or downloading any materials from it, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements. The information at this Web site might include opinions or views which, unless expressly stated otherwise, are not necessarily those of the author.

All content and information might be changed or updated without notice.

10th Ranked bank Fails

A leading candidate to fail for some time, The First National Bank of Florida based in Milton, Florida was closed today by the Office of the Comptroller of the Currency. First National was ranked 10th on the most recent list. The approximately $296.8 million in total assets and $280.1 million in total deposits of the former First National were taken over by CharterBank (un-ranked as a former OTS regulated bank) of West Point, Georgia. The FDIC and CharterBank entered into a loss-share transaction on $216.3 million of The First National Bank of Florida's assets. The expected cost to the Deposit Insurance Fund (DIF) will be $46.9 million.

Please note: We are doing everything we can to update the list for the current quarter. Due to changes in the regulatory framework for previously OTS overseen banks and other technical issues, The Bank Blog is not certain when the next list will be posted. The models employed herein are based on the expectations for a failure up to a year into the future. Our research has shown that the highest ranks fail not only more often but also faster, hence our desire to update the list as often as possible. Nonetheless, the list continues to provide an accurate reflection of bank soundness as evidenced by the continuing accuracy in the last few weeks.

The Bank Blog

Sixteenth Ranked Creekside and a Second Georgia Bank Fail

This week Georgia Commerce Bank (3221st) of Atlanta, Georgia, acquired two other Georgia-based banks: CreekSide Bank (16th) of Woodstock and Patriot Bank of Georgia of Cumming (59th). The two banks were of similar size with approximately $102.3 million in total assets at Creekside and $150.8 million at Patriot. Together, this represents a substantial increase, about 62%, in size for Georgia Commerce while adding 3 more physical branches to their network. In order to facilitate the purchase, the FDIC and Georgia Commerce Bank entered into loss-share transactions on $69.2 million in CreekSide Bank assets and $136.2 million of Patriot Bank's. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will total $71.7 million.

No Closings This Week

Possibly due to improved soundness, or maybe just due to the impending hurricane, there were no closures this week.

Four Failures Including Another Top 40

Note to readers: The Office of the Comptroller of the Currency (OCC) now regulates thrifts and other institutions formerly regulated by the Office of Thrift Supervision. As of this time, however, there is still insufficient available data to add these banks to the rating system used by The Bank Blog.

26th ranked First Southern National Bank of Statesboro, Georgia by the OCC. Heritage Bank of the South (formerly OTS regulated) of Albany, Georgia has agreed to assume all of the approximately $159.7 million in total deposits of First Southern National Bank. Of the approximately $164.6 million in total assets, the FDIC and Heritage Bank of the South entered into a loss-share transaction on $115.7 million of First Southern National Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $39.6 million.

In an unusual move, 68th ranked Public Savings Bank of Huntingdon Valley, Pennsylvania, was closed on Thursday by the Pennsylvania Department of Banking. This small bank, $46.8 million by assets, was acquired by Capital Bank, National Association (2702nd) of Rockville, Maryland. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.0 million.

94th ranked First Choice Bank of Geneva, Illinois, was closed today by state regulators. The approximately $141.0 million in total assets and $137.2 million in total deposits were acquired by Inland Bank & Trust (595th) of Oak Brook, Illinois, to. The FDIC estimates that the cost to the DIF will be $31.0 million.

Un-ranked Lydian Private Bank of Palm Beach, Florida, was also closed today by the OCC. Sabadell United Bank, National Association (1454th) of Miami, Florida agree to assume the approximately $1.70 billion in total assets and $1.24 billion in total deposits adding nearly 50% to its total size in one day. In order to facilitate the acquisition, the FDIC and Sabadell United Bank entered into a loss-share transaction on $907.1 million of Lydian Private Bank's assets. As a result, the FDIC estimates that the cost to DIF of $293.2 million.

Regulators Remove Another Top 40

13th ranked First National Bank of Olathe of Olathe, Kansas, was closed today by the Office of the Comptroller of the Currency. The assets of about $538.1 million in total assets and $524.3 million in deposits have been assumed by Enterprise Bank & Trust (1183rd) of Clayton, Missouri. The FDIC and Enterprise Bank & Trust entered into a loss-share transaction on $419.6 million of First National Bank of Olathe's assets. This was Enterprise's third acquisition since the beginning of the crises and the first located outside of Arizona greatly expanding the bank's service area. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116.6 million.

Bank of Whitman and One Other Close

78th ranked, Bank of Whitman of Colfax, Washington, was closed today. In an unusual twist, Columbia State Bank (3713th) of Tacoma, Washington will only partially acquire the former bank. While all of the approximately $515.7 million in deposits will be assumed by Columbia State Bank, only 8 of the 20 branches will re-open. In all, only $314.4 of the $548.6 million in total assets will be acquired. Relative to other closings, the cost to the Deposit Insurance Fund (DIF) will be substantial at $134.8 million.

202nd ranked Bank of Shorewood of Shorewood, Illinois, was closed today after failing to address a Prompt Corrective Action issued against it in May. The bank was unsuccessful in their attempt to re-capitalize the bank. Instead, Heartland Bank and Trust Company (2888th) of Bloomington, Illinois has agreed takeover nearly all of the approximately $104.0 million in deposits and $110.7 million in total assets. The FDIC estimates that the cost to the DIF will be $25.6 million.

Eighth-Ranked BankMeridian and Two Other Top 40 Banks Fail

Eighth ranked, BankMeridian, N.A. of Columbia, South Carolina succumbed to regulators this week as it was closed today by the Office of the Comptroller of the Currency. SCBT, National Association (1144th) of Orangeburg, South Carolina agreed to take over the approximately $239.8 million in total assets and $215.5 million in total deposits of BankMeridian, N.A. This was SCBT's third acquisition of a failed bank. SCBT also entered into a loss-share transaction on $179.0 million of the assets and the total estimated cost to the Deposit Insurance Fund (DIF) is expected to be $65.4 million.

The largest bank to fail this week was 19th ranked Integra Bank, National Association of Evansville, Indiana. The roughly $2.2 billion bank by assets was acquired by Old National Bank (2068th) also of Evansville, Indiana. With this acquisition Old National Bank raises their total asset base to nearly $10 billion. This could result in the bank facing greater regulatory scrutiny in the future as some provisions of Dodd-Frank focus on larger banks. The deal includes a loss-share transaction on $1.2 billion of Integra Bank, National Association's assets and is expected to cost the DIF $170.7 million.

Thirtieth ranked, Virginia Business Bank of Richmond, Virginia also closed today. Xenith Bank (6136th) of Richmond, Virginia has agreed purchase nearly all of the $95.8 million in total assets and $85.0 million in total deposits of Virginia Business Bank. The FDIC estimates that the cost will be $17.3 million.

Bank of Choice and Two Others Fail This Week

American Momentum Bank of Tampa, Florida, acquired the banking operations, including all the deposits, of Southshore Community Bank of Apollo Beach, Florida, and LandMark Bank of Florida, Sarasota. The two banks were 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 American Momentum Bank.

Southshore Community Bank had two branches, and LandMark Bank of Florida had six branches. All eight branches of the two closed banks will reopen during normal business hours beginning Saturday as branches of American Momentum Bank. Depositors of the two failed banks will automatically become depositors of American Momentum Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.

As of March 31, 2011, Southshore Community Bank had approximately $46.3 million in total assets and $45.3 million in total deposits; and LandMark Bank of Florida had total assets of $275.0 million and total deposits of $246.7 million. In addition to assuming all of the deposits of the two Florida banks, American Momentum Bank agreed to purchase essentially all of their assets.


The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Southshore Community Bank will be $8.3 million and for LandMark Bank of Florida, $34.4 million.

Ameris Acquires Two Failed Banks, Two Others Fail

A frequent acquirer of closed banks, Ameris Bank took over two Georgia-based banks this week. The first was High Trust Bank of Stockbridge, Georgia. High Trust was the second riskiest firm on our list. The other was, just off the list, 44th ranked One Georgia Bank based in Atlanta. These are the 7th and 8th failed banks acquired by Ameris, with the prior two banks having been acquired in November of last year. Perhaps as a result of these ongoing acquisitions, Ameris itself is not without its own financial soundness issues. It ranks among the top 7% in terms of risk at 484th on our list.

With these acquisitions, $2.9 billion Ameris Bank by assets has grown considerably. Both failed banks were of approximately the same size and represented a total of about $380 million in assets and $350 million in deposits as of their most recent federal filings. Ameris entered into a loan-loss sharing transaction with the FDIC on $311.1 million worth of total assets and the overall cost to the FDIC for these shutdowns is estimated at $110 million.

73rd ranked Summit Bank of Prescott, Arizona was also acquired today by nearby Yuma-based The Foothills Bank (4508th). Summit Bank had approximately $72.0 million in total assets and $66.4 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.3 million.

76th ranked, First Peoples Bank of Port Saint Lucie, Florida, was also closed today. The assets were sold to Premier American Bank, National Association (5257th) of Miami, Florida. This was the 5th acquisition for the bank which began as the result of an earlier failure. the roughly $2.5 billion bank by assets added approximately $228.3 million more by acquiring First Peoples Bank. There was no loan-loss sharing agreement and the FDIC estimates the overall cost to be a scant $7.4 million.

Three Top 40 Closings This Week (developing article)

The southeastern U.S. was sparred the regulators axe this week as three of the Top 40 banks closed week all came from relatively fewer, centrally located Colorado and Illinois.

6th ranked, Colorado Capital Bank of Castle Rock, Colorado, was closed today by the Colorado Division of Banking. First-Citizens Bank & Trust Company of Raleigh, North Carolina (895th) agreed to acquire nearly all of the approximately $717.5 million in total assets of the former bank and added roughly $672.8 million to its deposit base. The acquisition includes a loss-share transaction on $580.0 million of Colorado Capital Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $283.8 million.

23rd ranked, Signature Bank of Windsor, Colorado, was also closed today. The approximately $66.7 million bank, in terms of total assets, was acquired by a similarly sized Points West Community Bank of Julesburg, Colorado (4215th). The FDIC estimates that the cost to the DIF will be $22.3 million.

28th ranked, First Chicago Bank & Trust of Chicago, Illinois, was the largest closing of the week. Its seven branches were acquired by Northbrook Bank & Trust Company (514th) of Northbrook, Illinois. First Chicago Bank & Trust had approximately $959.3 million in total assets, of which Northbrook agreed to purchase about $880.7 million. The FDIC and Northbrook Bank & Trust Company also entered into a loss-share transaction on $699.8 million of First Chicago Bank & Trust's former assets. The FDIC estimates that the cost to the DIF will be $284.3 million.

No Closings This Week

There were no new closings for the week ended July 1st.

Regulators Close Another Top 40

34th ranked, Mountain Heritage Bank of Clayton, Georgia, was closed today. Deposits of the bank were acquired by First American Bank and Trust Company (1271th) of Athens, Georgia. Mountain Heritage Bank had approximately $103.7 million in total assets and $89.6 million in total deposits at the time of failure. First American Bank and Trust Company also entered into a loss-share transaction with the FDIC on $69.2 million of Mountain Heritage Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $41.1 million.

This McIntosh is Not So Sweet

14th ranked McIntosh State Bank of Jackson, Georgia, was finally closed today. The approximately $339.9 million bank in total assets was acquired by Hamilton State Bank (6627th). Hamilton State Bank entered into a loss-share transaction with the FDIC on $242.1 million of the former McIntosh State Bank's assets. Hamilton previously purchased the Bartow County Bank in April of this year. The FDIC estimates costs to the Deposit Insurance Fund (DIF) of about $80.0 million.

34th ranked First Commercial Bank of Tampa Bay, Florida, was also closed today. The nearly $100 million bank by assets was acquired by Stonegate Bank (5519th) of Fort Lauderdale, Florida. The failed bank acquisition was the first for Stonegate and did not include any form of loss-sharing. The FDIC estimates that the cost to the DIF will be $28.5 million.

No New Closings

There were no closings this week.

Atlantic Bank and Trust Closes This Week

In the 45th bank closing of the year, un-ranked Atlantic Bank and Trust of Charleston, South Carolina, was closed today by the Office of Thrift Supervision. First Citizens Bank and Trust Company, Inc. (1310th) of Columbia, South Carolina has agreed to assume all of the deposits of the former bank. The roughly $200 million acquisition in terms of total assets was First Citizens' third since the beginning of the current crisis.
The FDIC entered into a loss-share transaction on $141.8 million of Atlantic Bank and Trust's assets. They estimate that the cost to the Deposit Insurance Fund (DIF) will be $36.4 million.

Columbia State Bank Acquires Second Failed Bank in Two Weeks

79th ranked First Heritage Bank of Snohomish, Washington by state regulators. The approximately $173.5 million bank by assets was taken over by Columbia State Bank of Tacoma, Washington. Columbia assumed the assets and deposits of the bank and entered into a $142.2 million loss-share transaction with the FDIC. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $34.9 million.

2 Georgia Banks Test the Newest List

Mirroring events in Feb., two Georgia-based banks were the first to fail after the newest Bank Blog listing.

21st ranked Atlantic Southern Bank of Macon and 85th ranked First Georgia Banking Company of Franklin were both closed and acquired by CertusBank, N.A., of Easley, SC (6003rd). Both banks were of similar size with assets and deposits slightly over $700 million. The FDIC and CertusBank, N.A. entered into loss-share transactions on $585.1 million of the assets of the former Atlantic Southern Bank and $452.1 million for First Georgia Banking Company. The combined cost to the deposit insurance fund is estimated at $431.0 million.

49th ranked Summit Bank of Burlington, Washington, was also closed today. The approximately $142.7 million dollar bank (by assets) was acquired by Columbia State Bank (3714th). The FDIC and Columbia State Bank entered into a loss-share transaction on $113.4 million of Summit Bank's assets. Overall, the FDIC estimates that the cost of closing Summit Bank at $15.7 million.

The May 2011 Top 40

Each quarter The Bank Blog releases a new Top 40 ranking based on the most recent data available from various sources. The current version of the list should be viewed as preliminary, however, as technical changes to the data and other refinements often require minor updates.

Of the 40 banks listed in February, 10 failed and 24 of the remaining are on the new list. While 6 banks fell from the list, The Bank Blog would like to caution our readers not to infer that those banks are now safe. None of those banks are currently ranked below the mid 60s. In all, banks that are or have been ranked on prior lists that have not failed still remain in the top 1% in terms of risk.

Returning banks are listed in bold and newly failed banks are listed in italics.

1. PISGAH COMMUNITY BANK of ASHEVILLE, NC
2. HIGH TRUST BANK of STOCKBRIDGE, GA
3. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
4. GREYSTONE BANK of RALEIGH, NC
5. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
6. COLORADO CAPITAL BANK of CASTLE ROCK, CO
7. LANDMARK BANK OF FLORIDA of SARASOTA, FL
8. BANKMERIDIAN, N.A. of COLUMBIA, SC
9. BANK OF LAS VEGAS of LAS VEGAS, NV
10. THE FIRST NATIONAL BANK OF FLORIDA of MILTON, FL
11. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
11. CENTRUST BANK, NATIONAL ASSOCIATION of NORTHBROOK, IL
12. SECURITY BANK, N.A. of NORTH LAUDERDALE, FL
13. THE FIRST NATIONAL BANK OF OLATHE of OLATHE, KS
14. MCINTOSH STATE BANK of JACKSON, GA
15. OLD HARBOR BANK of CLEARWATER, FL
16. CREEKSIDE BANK of WOODSTOCK, GA
17. OPTIMUMBANK of PLANTATION, FL
18. FIRST INTERNATIONAL BANK of PLANO, TX
19. INTEGRA BANK NATIONAL ASSOCIATION of EVANSVILLE, IN
20. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
21. ATLANTIC SOUTHERN BANK of MACON, GA
22. MID CITY BANK, INC. of OMAHA, NE
23. SIGNATURE BANK of WINDSOR, CO
24. FIDELITY BANK OF FLORIDA, N.A. of MERRITT ISLAND, FL
25. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
26. FIRST SOUTHERN NATIONAL BANK of STATESBORO, GA
27. FIRST ASIAN BANK of LAS VEGAS, NV
28. FIRST CHICAGO BANK & TRUST of CHICAGO, IL
29. ALL AMERICAN BANK of DES PLAINES, IL
30. VIRGINIA BUSINESS BANK of RICHMOND, VA
31. SOUTHERN COMMERCE BANK, N.A. of TAMPA, FL
32. BUILDERS BANK of CHICAGO, IL
33. MOUNTAIN HERITAGE BANK, of CLAYTON, GA
34. FIRST COMMERCIAL BANK OF TAMPA BAY of TAMPA, FL
35. GLOBAL COMMERCE BANK of DORAVILLE, GA
36. BANK OF CHOICE of GREELEY, CO
37. BANK OF THE COMMONWEALTH of NORFOLK, VA
38. FIRST COMMERCIAL BANK of BLOOMINGTON, MN
39. FRIENDS BANK of NEW SMYRNA BEACH, FL
40. MONTGOMERY BANK & TRUST of AILEY, GA

Disclaimer:

The content of this web site is for general information purposes only and does not constitute advice. The author tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors should not act upon content or information without first seeking appropriate professional advice.

The author accepts no responsibility for and excludes all liability in connection with browsing this Web site, use of information or downloading any materials from it, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements. The information at this Web site might include opinions or views which, unless expressly stated otherwise, are not necessarily those of the author.

All content and information might be changed or updated without notice.

No Closings This Week

No banks were closed the week ending May 13th.

Premier American Bank Acquires Third Failed Bank in Two Weeks

OTS regulated (unranked), Coastal Bank of Cocoa Beach, FL closed this week with approximately $129.4 million in total assets and $123.9 million in total deposits. Florida Community Bank, owned by Premier American Bank, N.A., Miami, FL agreed to assume nearly all of the assets and deposits of the failed bank. This is the third failed bank acquired by Premier American in the last two week. Premier itself was formed when a bank of the same name was shut down in Jan. of 2010 and now contains the assets of a total of five shuttered banks. The agreement included a $108.2 million loss-share transaction FDIC and Premier American. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $13.4 million.

Fed Friday Returns in Full Force

After taking the Easter holiday off last week, regulators came back swinging with five closings (so far). Of these, 4 were listed on The Bank Blog's Top 40 list.

List leader, First Choice Community Bank of Dallas, GA finally succumbed to its fate as the riskiest bank this week. It had about $308.5 million in total assets and $310.0 million in total deposits when closed. Bank of the Ozarks (2415th) of Little Rock, AR has agreed to assume all deposits. Bank of the Ozarks also agreed to acquire the roughly three times as large, and 27th ranked, The Park Avenue Bank of Valdosta, GA.

Besides assuming all the deposits from the two Georgia banks, Bank of the Ozarks will purchase essentially all of their assets. The FDIC and Bank of the Ozarks entered into loss-share transactions on $260.7 million in First Choice Community Bank assets and $514.1 million for The Park Avenue Bank. The FDIC estimates the costs to the DIF at $92.4 million and $306.1 million respectively.

6th ranked, First National Bank of Central Florida of Winter Park, FL with approximately $352.0 million in total assets and $312.1 million in total deposits was closed. Florida Community Bank, a division of Premier American Bank, N.A. (4938th) of Miami, FL has agreed to assume all deposits. Florida Community Bank also acquired 16th ranked Cortez Community Bank of Brooksville, FL. Cortez Community was a smaller bank with approximately $70.9 million in total assets and $61.4 million in total deposits.

The FDIC and Premier American Bank, N.A. entered into loss-share transactions of $270.0 million for First National Bank and the loss-share transaction for $51.3 million for Cortez Community Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $42.9 million and $18.6 million respectively.

The only bank to close this week that was not listed was 53rd ranked Community Central Bank of Mount Clemens, MI. Community Central had approximately $476.3 million in total assets and $385.4 million in total deposits when closed. Talmer Bank & Trust (unranked) of Troy, MI has agreed to assume all deposits. The FDIC and Talmer Bank & Trust have entered into a loss-share transaction on $362.4 million worth of assets. The estimated cost to the DIF for this closure is estimated at $183.2 million.

No Closings This Week

No doubt due to the holiday in some parts of the country on Friday, there were no closings this week.

26th Ranked Bartow County Bank and Others Fail

Regulators made up for lost time this week closing six banks, including two in both Alabama and Georgia. Both small and large banks fell under feds axe from $38 million Rosemount Bank in Minnesota to $3 billion Superior Bank of Birmingham, Alabama.

26th ranked Bartow County Bank of Cartersville, Georgia, was closed this week by the Georgia Department of Banking and Finance. Bartow County Bank had approximately $330.2 million in total assets and $304.1 million in total deposits. Hamilton State Bank (4090th) of Hoschton, GA has agreed to assume all deposits and nearly all of the assets of the failed bank. The agreement between the FDIC and Hamilton State Bank includes a loss-sharing transaction on $247.5 million of Bartow County Bank's assets and the FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $69.5 million.

Falling just shy of the list, 43rd ranked New Horizons Bank of East Ellijay, Georgia, was also closed today by Georgia regulators. Citizens South Bank (un-ranked) of Gastonia, North Carolina has agreed to assume all of the deposits of New Horizons Bank. New Horizons had approximately $110.7 million in total assets and $106.1 million in total deposits. The FDIC and Citizens South Bank entered into a loss-share transaction on $84.7 million of New Horizons Bank's assets. The FDIC estimates costs of closing the bank at $30.9 million.

60th ranked Nexity Bank of Birmingham, Alabama, also closed today. It had approximately $793.7 million in total assets and $637.8 million in total deposits. Newly formed AloStar Bank of Commerce has agreed to assume all the deposits and has entered into a loss-share transaction on $384.2 million of Nexity Bank's assets. The FDIC estimates the costs of this closure at $175.4 million.

Birmingham, Alabama also experienced largest bank closure of the week as Superior Bank was forced to shut its doors. A newly chartered bank subsidiary of Community Bancorp LLC (CBC) called Superior Bank, N.A. was formed to assume the deposits of the former bank. Superior Bank had approximately $3.0 billion in total assets and $2.7 billion in total deposits. The FDIC and Superior Bank, N.A. entered into a loss-share transaction on $1.84 billion of Superior Bank's assets. The expected costs of Superior's failure are considerable at $259.6 million.

Superior was closed by the Office of Thrift Supervision (OTS). Due to differences in reporting requirements for OTS banks, they are not ranked by The Bank Blog. Superior's new owner, CBC, also acquired Cadence Bank in March. That purchase included a infusion $144 million into a bank which recently ranked 303rd on our list.

66th ranked Heritage Banking Group of Carthage, Mississippi, was closed today by the Mississippi Department of Banking and Consumer Finance. As of December 31, 2010, Heritage Banking Group had approximately $224.0 million in total assets and $196.2 million in total deposits. Trustmark National Bank (4298th) of Jackson, Mississippi has assumed the deposits of the failed bank and entered into a loss-share transaction on $156.4 million of Heritage Banking Group's assets. The FDIC estimates the cost to the DIF will be $49.1 million.

The smallest bank to close this week was 156th ranked Rosemount National Bank of Rosemount, MN with approximately $37.6 million in total assets and $36.6 million in total deposits. Central Bank (1732) of Stillwater, MN has agreed to assume all deposits. The cost is estimated at relatively inexpensive $3.6 million.

Regulators Return to Action

This Friday, 17th ranked Western Springs National Bank and Trust of Western Springs, IL became the first bank to be shut down by regulators in two week. Western had approximately $186.8 million in total assets and $181.9 million in total deposits it was closed. Heartland Bank and Trust Company, (2746th) of Bloomington, IL assumed nearly all the assets and assumed all the deposits. The FDIC estimates the cost at the closing to be $31.0 million primarily due to a loss-share transaction on $100.8 million of Western Springs National Bank and Trust's commercial loans.

93rd ranked Nevada Commerce Bank of Las Vegas, Nevada was also closed today. City National Bank (1644th) of Los Angeles, California, to assume all of the deposits of Nevada Commerce Bank. This is the fourth acquisition of a failed bank by City National Bank since the start of the financial crisis and the second in Las Vegas. Nevada Commerce Bank had assets of approximately $144.9 million and deposits of $136.4 million and its closing is expected to cost the insurance fund $31.9 million.

All is Quiet on the Failure Front

For the third week in the last five, regulators have elected not to close any commercial banks. The trend suggests that fewer banks would be at risk. While bank profitability is higher and asset values have recovered, there are still a number of banks at risk. At the Bank Blog we will be looking closely to see if the skies are clearing or this is the calm before another storm.

Number Three Worst Bank is Number One Failure

3rd ranked, The Bank of Commerce of Wood Dale, IL finally succumbed to regulators this week. The roughly $163.1 million bank by total assets had nearly identical deposits of $161.4 million, a clear sign of trouble. Advantage National Bank Group (3941st) of Elk Grove Village, IL has agreed to assume all deposits. They also entered into a loss-share transaction with the FDIC on $145.7 million of The Bank of Commerce's assets. Advantage National Bank Group will share in the losses on the asset pools covered under the loss-share agreement. The expected costs of the closure are $41.9 million.

Today, the FDIC also issued it's new list of Prompt Corrective Actions from February. This list indicates some of the most at risk banks. Included on that list are ranked banks:

4. Bank of Las Vegas
9. Michigan Commerce Bank
15. Sunrise Bank of Arizona

Silence is Golden

For the second time this month, there have been no closings. Has tide turned? Only time will tell for sure, but the statistics suggest almost as many banks still have problems as in earlier quarters.

Second Worst Bank Fails and a Surprise

Second ranked Legacy Bank of Milwaukee, WI was closed by regulators today. It had approximately $190.4 million in total assets and $183.3 million in total deposits. Seaway Bank and Trust Company of Chicago, IL has agreed to assume all deposits. Seaway is second time acquiring bank having previously bought First Suburban National Bank of Maywood, IL. Although not among those banks deemed most risky by The Bank Blog, it should be pointed out that Seaway itself is not without its risks. It most recently received a rank of 434th putting it in the highest decile in terms of risk and struggles with a lower equity ratio than its peers.

The First National Bank of Davis of Davis, OK also closed today. On paper this was a very sound, profitable bank with a ranking of 3381. But just two days ago, the bank's president (and later CEO) since 1993, W.A. "Dub" Moore, was removed by OCC. With an expected cost to the Deposit Insurance Fund (DIF) of $26.5 million one can only surmise that the reported numbers were probably inaccurate. With its acquisition by the Pauls Valley National Bank (5681st) of Pauls Valley, OK chances are we will never know the bank's true state prior to failure. This is the second bank with an apparent fraud to fail since The Bank Blog began reporting.

Crickets...

There were no new failures this week. If there is anything else our readers would like to ask or see reported, we welcome you to comment.

Why the Delay in Closing Banks?

A few weeks ago someone commented about whether or not there would be more closing that day. For some reason, there have been some problems replying to comments. But it did suggest an interesting article topic: Why are the closings so spread out during the day and weeks?

The FDIC has an interesting video about the resolution process. While banks typically report new information to their regulators within a few weeks after the quarter closes, it takes some time for the latter to recognize and act on troubled bank. Once they do, the banks are usually given time to take "prompt corrective action" (PCA). This can take up to another banking quarter. Not all PCAs necessarily result in closings if the banks comply and a number of closings come at the direction of state or other primary regulators. So there may not be a PCA at all. Also, there is generally a lag between the announcement and when it is made public. This last from a few days or weeks for the Federal Reserve Bank and OCC to end of the month after the enforcement for the FDIC.

So we end up with a number of banks failing well after the predictions are made or, in some cases, not at all. This seems to be most pronounced right now for those several banks held by the same holding company Capital Bancorp Limited (CBC).

Regulators also try to close banks when the disruption can be minimized. This is why banks are closed on Friday evenings, usually after 5 pm. With the varying time zones and delays in reporting, the list may change for several hours or, in one case, on Saturday.

A Quiet Week for Banks

After several weeks of multiple closures, authorities have only closed one bank this Friday. 13th ranked Valley Community Bank of St. Charles, IL was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking. Valley Community had approximately $123.8 million in total assets and $124.2 million in total deposits. First State Bank (3846th) of Mendota, IL has agreed to assume all deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.8 million.

2 Georgia Banks Test the Newest List

This week 28th ranked Habersham Bank of Clarkesville, GA became the first Top 40 to fail. It had approximately $387.6 million in total assets and $339.9 million in total deposits was closed. SCBT National Association (2763rd) of Orangeburg, SC has agreed to assume all deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $90.3 million.

50th ranked (formerly 37th) Citizens Bank of Effingham of Springfield, GA also failed this week. It had approximately $214.3 million in total assets and $206.5 million in total deposits. Heritage Bank of the South (3800th) of Albany, GA has agreed to assume all deposits. The FDIC estimates the cost to the DIF at $59.4 million.

111th ranked Charter Oak Bank of Napa, CA also shut down this week. Charter Oak was a member of the Aug. 2010 list. Although its overall risk appeared to be falling it was not enough to avoid eventual seizure. The bank had approximately $120.8 million in total assets and $105.3 million in total deposits when closed. Bank of Marin (4126th) of Novato, CA has agreed to assume all deposits. The total cost to the DIF is estimated at $21.8 million.

The final closure of the week was OTS regulated (so un-ranked) San Luis Trust Bank, FSB of San Luis Obispo, CA. It had approximately $332.6 million in total assets and $272.2 million in total deposits. First California Bank (5008th) of Westlake Village, CA assumed the deposits. The expected cost is estimated to be $96.1 million.

Recap - How did the last quarter predictions fare?

Fewer banks failed, 26, over the last quarter in part due to a number of holidays. Of these:

6 banks in the Top 10
6 banks 11th-40th
5 banks 51st-100th
5 banks 100th-117th
2 All out surprises - First Southern Bank, a fraud victim, and First State Bank
2 Unlisted, OTS regulated banks for which there isn't data.

In all, 12 banks left the list due to failures this period. 4 others left while the other 24 remain on the list.

Feb. 2011 Top 40

It is time for a new Top 40 listing. The Bank Blog has refined a few of it's measures which should improve model predictability. Expected failure rates are down slightly for the average for banks on the list. Returning banks make up 60% of the list and are in bold. Closed banks are in italics.

1. FIRST CHOICE COMMUNITY BANK of DALLAS, GA
2. LEGACY BANK of MILWAUKEE, WI
3. THE BANK OF COMMERCE of WOOD DALE, IL
4. BANK OF LAS VEGAS, of LAS VEGAS, NV
5. MID CITY BANK, INC. of OMAHA, NE
6. FIRST NATIONAL BANK OF CENTRAL FLORIDA of WINTER PARK, FL
7. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
8. THE FIRST NATIONAL BANK OF OLATHE of OLATHE, KS
9. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
10. OPTIMUMBANK of PLANTATION, FL
11. MCINTOSH STATE BANK of JACKSON, GA
12. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
13. VALLEY COMMUNITY BANK of SAINT CHARLES, IL
14. THE FIRST NATIONAL BANK OF FLORIDA of MILTON, FL
15. SUNRISE BANK OF ARIZONA of PHOENIX, AZ
16. CORTEZ COMMUNITY BANK of BROOKSVILLE, FL
17. WESTERN SPRINGS NATIONAL BANK AND TRUST of WESTERN SPRINGS, IL
18. PISGAH COMMUNITY BANK of ASHEVILLE, NC
19. HIGH TRUST BANK of STOCKBRIDGE, GA
20. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
21. CREEKSIDE BANK of WOODSTOCK, GA
22. FRIENDS BANK of NEW SMYRNA BEACH, FL
23. ALL AMERICAN BANK of DES PLAINES, IL
24. THE FIRST STATE BANK of STOCKBRIDGE, GA
25. CENTRUST BANK, N.A. of NORTHBROOK, IL
26. BARTOW COUNTY BANK of CARTERSVILLE, GA
27. THE PARK AVENUE BANK of VALDOSTA, GA
28. HABERSHAM BANK of CLARKESVILLE, GA
29. FIRST INTERNATIONAL BANK of PLANO, TX
30. PATRIOT BANK OF GEORGIA of CUMMING, GA
31. BUILDERS BANK of CHICAGO, IL
32. SOUTHERN COMMERCE BANK, NA of TAMPA, FL
33. ATLANTIC SOUTHERN BANK of MACON, GA
34. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
35. SUNRISE BANK of VALDOSTA, GA
36. FIRST COMMERCIAL BANK of TAMPA, FL
37. LANDMARK BANK OF FLORIDA of SARASOTA, FL
38. DOUGLAS COUNTY BANK of DOUGLASVILLE, GA
39. PIEDMONT COMMUNITY BANK of GRAY, GA
40. COLORADO CAPITAL BANK of CASTLE ROCK, CO


Disclaimer:

The content of this web site is for general information purposes only and does not constitute advice. The author tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors should not act upon content or information without first seeking appropriate professional advice.

The author accepts no responsibility for and excludes all liability in connection with browsing this Web site, use of information or downloading any materials from it, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements. The information at this Web site might include opinions or views which, unless expressly stated otherwise, are not necessarily those of the author.

All content and information might be changed or updated without notice.

Number 40 Fails Along With Three Others

The first two banks to close this week were both just shy of posted list.

In the 59th position, Sunshine State Community Bank of Port Orange, FL closed with approximately $125.5 million in total assets and $116.7 million in total deposits was closed. Sunshine was acquired by 5283rd ranked Premier American Bank. Premier was the first "shelf registered" bank created to allow new acquirers access to the FDIC bank auctions. It officially became a bank when it acquired the failed bank of the same name. In slightly over a year, Premier has acquired four failed Floridian banks and amassed assets in excess of $2.5 billion. The cost to the FDIC for the resolution of Sunshine is estimated at $30 million.

Just shy of the list, 65th ranked Peoples State Bank of Hamtramck, MI closed this week with approximately $390.5 million in total assets and $389.9 million in total deposits. With very solid financials, 6345th ranked First Michigan Bank of Troy, MI has agreed to assume all deposits of the failed bank. The FDIC entered into a loss sharing agreement with First Michigan and the total estimated cost to the insurance fund is estimated at $87.4 million.

171st ranked Badger State Bank of Cassville, WI also closed this week. It had approximately $83.8 million in total assets and $78.5 million in total deposits. 2773rd ranked Royal Bank, Elroy, WI has agreed to assume all deposits. The cost of closing this bank is estimated at $17.5 million.

In the final closing of the day, 40th ranked Canyon National Bank of Palm Springs, CA also fell victim to regulators this week. This is the first failure in California since early November. Canyon National had approximately $210.9 million in total assets and $205.3 million in total deposits. Pacific Premier Bank (26141st) of Costa Mesa, CA has agreed to assume all deposits. The expected loss to the insurance fund is a relatively inexpensive $10 million, less than 5% of the total assets of the former bank.

Two "Top 40" Georgia Banks Fail

The first failure of the week belongs to 19th ranked American Trust Bank of Roswell, GA. This smaller bank had approximately $238.2 million in total assets and $222.2 million in total deposits when closed. 2463rd ranked Renasant Bank of Tupelo, MS has agreed to assume all deposits of the failed bank along with $147.4 million worth of the former bank's assets. The FDIC estimates the cost of this closure at $71.5 million.

The second failure of the week belongs to 13th ranked North Georgia Bank of Watkinsville, GA. Similarly sized, North Georgia Bank closed with approximately $153.2 million in total assets and $139.7 million in total deposits. 2860th ranked BankSouth of Greensboro, GA has agreed to assume all deposits. The FDIC estimates the cost to the Deposit Insurance Fund (DIF) to be $35.2 million.

The third bank to fail was 125th ranked Community First Bank Chicago of Chicago, IL. It had approximately $51.1 million in total assets and $49.5 million in total deposits was closed. 463rd ranked Northbrook Bank & Trust Company of Northbrook, IL has agreed to assume all deposits. Northbrook Bank & Trust is a subsidiary on Wintrust Financial Corporation. While the bank was high enough on the list to indicate that it had some problems, they were able recapitalize the larger bank holding company with $284.7 million in new equity last December.

Some Large Failures and One Small Surprise

For the second time in two weeks, a bank was closed without a prospective buyer: 5th ranked FirstTier Bank of Louisville, CO. FirstTier is also the 6th failure among the top 10 listed banks this quarter. A medium sized bank, it had approximately $781.5 million in total assets and $722.8 million in total deposits was closed. To protect the insured depositors, the FDIC created Deposit Insurance National Bank of Louisville - a new depository institution chartered by the Office of Thrift Supervision (OTS), which will remain open until February 28, 2011.

25th ranked First Community Bank of Taos, NM closed with approximately $2.31 billion in total assets and $1.94 billion in total deposits. Major bank (and 1026th on the list) U.S. Bank, N.A of Minneapolis, MN has agreed to assume all deposits.

The second bank to close this week was Evergreen State Bank of Stoughton, WI. Evergreen ranked 52nd on the most recent list. It had approximately $246.5 million in total assets and $195.2 million in total deposits when it was closed. 2642nd ranked McFarland State Bank of McFarland, WI has agreed to assume all deposits.

Small banks continue to fall victim as the Oklahoman State Banking Department, along with the FDIC, closed The First State Bank of Camargo, OK. First State Bank ranked 3047th on the list suggesting a stable despite having a very small asset base of 43.5 million and $40.3 million in total deposits. As was the case for a previous closing however, we can see how quickly one or two actions can turn things around. Based upon the estimated $20.1 million in estimate losses to the FDIC insurance fund it is evident these assets were greatly overvalued and the bank was, in fact, highly insolvent. 1886th ranked Bank 7 of Oklahoma City, OK agreed to assume the deposits of the one branch bank.

Two Top 10 Banks Among This Week's Failures

This week, two of the 10 riskiest commercial banks in the U.S. were taken over by regulators. Additionally, the first larger bank, one with over $1 billion in total assets, in almost three months failed.

6th ranked Enterprise Banking Company of McDonough, GA closed with approximately $100.9 million in total assets and $95.5 million in total deposits. No bidder was found willing to purchase the bank's assets and to assume the deposits. As a result, to protect the insured depositors, the FDIC created Deposit Insurance National Bank (DINB) of McDonough. This is a new depository institution chartered by the Office of Thrift Supervision (OTS). It will remain open until January 28, 2011. Unlike normal bank closings, this will result in account holder being encouraged to withdraw their money or they will receive a check and the account will be closed.

10th ranked The Bank of Asheville of Asheville, NC has been known to be struggling for some time. It was a repeat member of this list and had approximately $195.1 million in total assets and $188.3 million in total deposits when it closed. First Bank (1125th) of Troy, NC has agreed to assume all deposits.

Falling just short of the current list, 53rd ranked CommunitySouth Bank & Trust of Easley, SC was the largest bank to fail this week. It had approximately $440.6 million in total assets and $402.4 million in total deposits. They were acquired by CertusBank, N.A. of Charlotte, NC. CertusBank is a newly-chartered bank subsidiary of Blue Ridge Holdings, Inc. of Charlotte, North Carolina. Blue Ridge Holdings was set up last fall to take advantage of the current banking crisis. In the application the bank suggested that it could raise up to $1 billion in equity.

In one of the largest failures in recent months, United Western Bank of Denver, CO was closed this week with approximately $2.05 billion in total assets and $1.65 billion in total deposits. United Western was regulated by the Office of Thift Supervision (OTS) and, as such, was not a part of the ranking system. Stable, but not stellar, First-Citizens Bank & Trust Co. (926th) of Raleigh, NC has agreed to assume all deposits.

Bank of the Ozarks Continues to Feed on Failed Banks

36th ranked Oglethorpe Bank was the first bank to close this week. Based in Brunswick, GA this small bank of approximately $230.6 million in total assets and $212.7 million in total deposits was acquired by 3060th ranked Bank of the Ozarks based in Little Rock, AR. Oglethorpe Bank was the 5th bank acquired to be acquired by the Bank of the Ozarks since March of last year. Previous banks include: Unity National Bank, Chestatee State Bank, Horizon Bank and Woodlands Bank.

2 Failures to Start of the New Year

The "honor" of the first bank to fail in 2011 belongs to First Commercial Bank of Florida based in Orlando. First Commercial Bank was rated as the single bank most likely to have failed on the entire list. It had approximately $598.5 million in total assets and $529.6 million in total deposits was closed. First Southern Bank (rated 1557th) of Boca Raton, FL has agreed to assume all deposits and acquired most of the assets. In addition, they have entered into a loss sharing agreement with the FDIC.

The second bank to fail this week is Legacy Bank of Scottsdale, AZ. This Legacy Bank ranked as the 113th least sound on the most recent list. Another Legacy Bank, that one located in Milwaukee, WI ranks 3rd and yet remains in business at this time. Legacy Bank had approximately $150.6 million in total assets and $125.9 million in total deposits was closed. It was acquired by Enterprise Bank & Trust of St. Louis, MO raising their asset level to over $2.5 billion, a roughly 6% increase.