Friday, October 7, 2011

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.