Three More Top 40 Failures This Week

Third-ranked First Guaranty Bank and Trust Company of Jacksonville, Florida, was closed today by regulators and acquired by CenterState Bank of Florida, National Association of Winter Haven, Florida. As of the most recent listing, CenterState Bank ranked a moderate 1717th on the list of most problematic banks. CenterState Bank has acquired six failed institutions since 2009. With this acquisition, they have added approximately $377.9 million in total assets and $349.5 million in total deposits. CenterState Bank of Florida, National Association also  entered into a loss-share transaction on $292.9 million of First Guaranty Bank and Trust Company of Jacksonville's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $82.0 million.

Fourteenth-ranked Tennessee Commerce Bank of Franklin, Tennessee was also closed today.  This was the first of two failures of a Tennessee based bank today and also the first since 2002. Republic Bank & Trust Company of Louisville has agreed to assume the approximately $1.156 billion in deposits of the failed bank. In a first acquisition of its kind for Republic, they agreed to purchase only $203.9 million of the failed bank's approximately $1.185 billion in total assets. As a result, the FDIC estimates that the cost to the DIF to be a hefty $416.8 million. Republic Bank and Trust ranks among the most solid banks on our list at 6111th, in the top 10% in terms of their stable financials.

38th ranked Patriot Bank Minnesota of Forest Lake, Minnesota, was closed today by the Minnesota Department of Commerce. First Resource Bank (6707th) of Savage, Minnesota, has agreed to assume the approximately $111.3 million in total assets and $108.3 million in total deposits of Patriot Bank Minnesota. First Resource Bank and the FDIC entered into a loss-share transaction on $79.4 million of Patriot Bank Minnesota's assets. The FDIC estimates that the cost to the DIF will be $32.6 million


Just out of the Top 40, at 47th, BankEast of Knoxville, Tennessee, was closed today by the Tennessee Department of Financial Institutions. U.S. Bank National Association (836th) of Cincinnati, Ohio has agreed to acquire the approximately $272.6 million in total assets and $268.8 million in total deposits of the former bank. The FDIC estimates that the cost to the DIF will be $75.6 million.

A Return to Bank Failures

After an unexpectedly long pause in bank closings, this week bring with it the first three shutdowns of the new year.

Sixth ranked Central Florida State Bank of Belleview, Florida, was the first bank to close in 2012. The bank's assets and deposits were assumed by CenterState Bank of Florida, National Association, of Winter Haven, Florida. This is the fifth such acquisition for CenterState who are currently ranked as the 1717th most risky bank on our list. As of the most recently available accounting, Central Florida State Bank had approximately $79.1 million in total assets and $77.7 million in total deposits. Of these assets, the FDIC and CenterState Bank of Florida , National Association entered into a loss-share transaction on $53.6 million of Central Florida State Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.4 million.

13th ranked The First State Bank of Stockbridge, Georgia, also failed this week. The former bank's approximately $536.9 million in total assets and $527.5 million in total deposits were taken over Hamilton State Bank of Hoschton, Georgia. This is the third acquisition for CenterState who are currently ranked as the 2278th most risky bank on our list. The FDIC and Hamilton State Bank entered into a loss-share transaction on $419.5 million of The First State Bank's assets. The FDIC estimates that the cost to the DIF will be $216.2 million.

American Eagle Savings Bank of Boothwyn, Pennsylvania, was also closed today by the Office of the Comptroller of the Currency. The small savings bank, with approximately $19.6 million in total assets and $17.7 million in total deposits was taken over by Capital Bank, National Association of Rockville, Maryland. This is the second acquisition for Capital Bank who currently rank as the 2111th most risky bank on our list. The FDIC estimates that the costs to the DIF will be $3.2 million.

FDIC Closes Bank With Ties to Obama Administration

At 5th on the new "Top 40" list for this quarter ShoreBank of Chicago, IL closed after extensive attempts to save the failing bank. ShoreBank has been credited with providing loans to many low income individuals and minority businesses in Chicago's Southside. In most respects a "classic" community bank, JP Morgan, Bank of America, Citigroup and other major banks all have played a role in trying to keep the bank going. ShoreBank had sizable assets of approximately $2.16 billion along with $1.54 billion in total deposits. But they could not escape the pressure of mounting losses and troubled loans.

A new entity, Urban Partnership Bank of Chicago, IL has agreed to assume nearly all deposits. Investors include Goldman Sachs Group Inc., General Electric Co., JPMorgan Chase & Co., Citigroup Inc. and several philanthropic groups, according to news reports.

At 6th on the list, Community National Bank at Bartow, FL closed today. It had approximately $67.9 million in total assets and $63.7 million in total deposits. It had lost $7.8 million in the first half of the year. CenterState Bank of Florida N.A. of Winter Haven, FL (3596th) has agreed to assume all deposits, excluding certain brokered deposits.

Also on the list, 35th ranked Independent National Bank of Ocala, FL closed as well. It had approximately $156.2 million in total assets and $141.9 million in total deposits. Losses for the first half of the year total led $7.2 million. CenterState Bank of Florida N.A.,also agreed to assume the deposits of this bank.

6687th ranked Rabobank, N.A. (6659th) of El Centro, CA also became the acquirer of two failed banks today. 78th ranked Pacific State Bank of Stockton, CA was one. Pacific State had approximately $312.1 million in total assets and $278.8 million in total deposits. The other, 99th ranked Butte Community Bank of Chico, CA had approximately $498.8 million in total assets and $471.3 million in total deposits.

At 178th Sonoma Valley Bank of Sonoma, CA with approximately $337.1 million in total assets and $255.5 million in total deposits was closed. Westamerica Bank (4038) of San Rafael, CA has agreed to assume all deposits.


Un-ranked (OTS regulated banks are not ranked) Imperial Savings and Loan Association of Martinsville, VA closed with approximately $9.4 million in total assets and $10.1 million in total deposits. River Community Bank, N.A of Martinsville, VA has agreed to assume all deposits. River Community Bank is a stable 1599th on the list, although earnings for the first half of the year were essentially flat.

Un-ranked Los Padres Bank of Solvang, CA with approximately $870.4 million in total assets and $770.7 million in total deposits was closed. Pacific Western Bank (1131st) of San Diego, CA has agreed to assume all deposits.