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.