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.