Friday, June 20, 2014

Hidden Valley Banks

Regulators shut down not one "Valley Bank" but two today.

The first, Valley Bank of Moline, Illinois, was closed today by state regulators. $375.4 million of the failed bank's approximately $456.4 million in total assets was purchased by Great Southern Bank of Reeds Spring, Missouri. In addition they assumed about $360.0 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $51.4 million. 

The other Valley Bank was based in Fort Lauderdale, Florida. It was closed today by state regulators. Landmark Bank, National Association, also from Fort Lauderdale, Florida has agreed to purchase the approximately $81.8 million in total assets and $66.5 million in total deposits of the former bank.
The FDIC estimates that the cost to the DIF at $7.7 million.