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.