Second ranked Legacy Bank of Milwaukee, WI was closed by regulators today. It had approximately $190.4 million in total assets and $183.3 million in total deposits. Seaway Bank and Trust Company of Chicago, IL has agreed to assume all deposits. Seaway is second time acquiring bank having previously bought First Suburban National Bank of Maywood, IL. Although not among those banks deemed most risky by The Bank Blog, it should be pointed out that Seaway itself is not without its risks. It most recently received a rank of 434th putting it in the highest decile in terms of risk and struggles with a lower equity ratio than its peers.
The First National Bank of Davis of Davis, OK also closed today. On paper this was a very sound, profitable bank with a ranking of 3381. But just two days ago, the bank's president (and later CEO) since 1993, W.A. "Dub" Moore, was removed by OCC. With an expected cost to the Deposit Insurance Fund (DIF) of $26.5 million one can only surmise that the reported numbers were probably inaccurate. With its acquisition by the Pauls Valley National Bank (5681st) of Pauls Valley, OK chances are we will never know the bank's true state prior to failure. This is the second bank with an apparent fraud to fail since The Bank Blog began reporting.
Friday, March 11, 2011
Friday, March 4, 2011
Crickets...
There were no new failures this week. If there is anything else our readers would like to ask or see reported, we welcome you to comment.
Monday, February 28, 2011
Why the Delay in Closing Banks?
A few weeks ago someone commented about whether or not there would be more closing that day. For some reason, there have been some problems replying to comments. But it did suggest an interesting article topic: Why are the closings so spread out during the day and weeks?
The FDIC has an interesting video about the resolution process. While banks typically report new information to their regulators within a few weeks after the quarter closes, it takes some time for the latter to recognize and act on troubled bank. Once they do, the banks are usually given time to take "prompt corrective action" (PCA). This can take up to another banking quarter. Not all PCAs necessarily result in closings if the banks comply and a number of closings come at the direction of state or other primary regulators. So there may not be a PCA at all. Also, there is generally a lag between the announcement and when it is made public. This last from a few days or weeks for the Federal Reserve Bank and OCC to end of the month after the enforcement for the FDIC.
So we end up with a number of banks failing well after the predictions are made or, in some cases, not at all. This seems to be most pronounced right now for those several banks held by the same holding company Capital Bancorp Limited (CBC).
Regulators also try to close banks when the disruption can be minimized. This is why banks are closed on Friday evenings, usually after 5 pm. With the varying time zones and delays in reporting, the list may change for several hours or, in one case, on Saturday.
The FDIC has an interesting video about the resolution process. While banks typically report new information to their regulators within a few weeks after the quarter closes, it takes some time for the latter to recognize and act on troubled bank. Once they do, the banks are usually given time to take "prompt corrective action" (PCA). This can take up to another banking quarter. Not all PCAs necessarily result in closings if the banks comply and a number of closings come at the direction of state or other primary regulators. So there may not be a PCA at all. Also, there is generally a lag between the announcement and when it is made public. This last from a few days or weeks for the Federal Reserve Bank and OCC to end of the month after the enforcement for the FDIC.
So we end up with a number of banks failing well after the predictions are made or, in some cases, not at all. This seems to be most pronounced right now for those several banks held by the same holding company Capital Bancorp Limited (CBC).
Regulators also try to close banks when the disruption can be minimized. This is why banks are closed on Friday evenings, usually after 5 pm. With the varying time zones and delays in reporting, the list may change for several hours or, in one case, on Saturday.
Friday, February 25, 2011
A Quiet Week for Banks
After several weeks of multiple closures, authorities have only closed one bank this Friday. 13th ranked Valley Community Bank of St. Charles, IL was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking. Valley Community had approximately $123.8 million in total assets and $124.2 million in total deposits. First State Bank (3846th) of Mendota, IL has agreed to assume all deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.8 million.
Friday, February 18, 2011
2 Georgia Banks Test the Newest List
This week 28th ranked Habersham Bank of Clarkesville, GA became the first Top 40 to fail. It had approximately $387.6 million in total assets and $339.9 million in total deposits was closed. SCBT National Association (2763rd) of Orangeburg, SC has agreed to assume all deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $90.3 million.
50th ranked (formerly 37th) Citizens Bank of Effingham of Springfield, GA also failed this week. It had approximately $214.3 million in total assets and $206.5 million in total deposits. Heritage Bank of the South (3800th) of Albany, GA has agreed to assume all deposits. The FDIC estimates the cost to the DIF at $59.4 million.
111th ranked Charter Oak Bank of Napa, CA also shut down this week. Charter Oak was a member of the Aug. 2010 list. Although its overall risk appeared to be falling it was not enough to avoid eventual seizure. The bank had approximately $120.8 million in total assets and $105.3 million in total deposits when closed. Bank of Marin (4126th) of Novato, CA has agreed to assume all deposits. The total cost to the DIF is estimated at $21.8 million.
The final closure of the week was OTS regulated (so un-ranked) San Luis Trust Bank, FSB of San Luis Obispo, CA. It had approximately $332.6 million in total assets and $272.2 million in total deposits. First California Bank (5008th) of Westlake Village, CA assumed the deposits. The expected cost is estimated to be $96.1 million.
50th ranked (formerly 37th) Citizens Bank of Effingham of Springfield, GA also failed this week. It had approximately $214.3 million in total assets and $206.5 million in total deposits. Heritage Bank of the South (3800th) of Albany, GA has agreed to assume all deposits. The FDIC estimates the cost to the DIF at $59.4 million.
111th ranked Charter Oak Bank of Napa, CA also shut down this week. Charter Oak was a member of the Aug. 2010 list. Although its overall risk appeared to be falling it was not enough to avoid eventual seizure. The bank had approximately $120.8 million in total assets and $105.3 million in total deposits when closed. Bank of Marin (4126th) of Novato, CA has agreed to assume all deposits. The total cost to the DIF is estimated at $21.8 million.
The final closure of the week was OTS regulated (so un-ranked) San Luis Trust Bank, FSB of San Luis Obispo, CA. It had approximately $332.6 million in total assets and $272.2 million in total deposits. First California Bank (5008th) of Westlake Village, CA assumed the deposits. The expected cost is estimated to be $96.1 million.
Thursday, February 17, 2011
Recap - How did the last quarter predictions fare?
Fewer banks failed, 26, over the last quarter in part due to a number of holidays. Of these:
6 banks in the Top 10
6 banks 11th-40th
5 banks 51st-100th
5 banks 100th-117th
2 All out surprises - First Southern Bank, a fraud victim, and First State Bank
2 Unlisted, OTS regulated banks for which there isn't data.
In all, 12 banks left the list due to failures this period. 4 others left while the other 24 remain on the list.
6 banks in the Top 10
6 banks 11th-40th
5 banks 51st-100th
5 banks 100th-117th
2 All out surprises - First Southern Bank, a fraud victim, and First State Bank
2 Unlisted, OTS regulated banks for which there isn't data.
In all, 12 banks left the list due to failures this period. 4 others left while the other 24 remain on the list.
Feb. 2011 Top 40
It is time for a new Top 40 listing. The Bank Blog has refined a few of it's measures which should improve model predictability. Expected failure rates are down slightly for the average for banks on the list. Returning banks make up 60% of the list and are in bold. Closed banks are in italics.
1. FIRST CHOICE COMMUNITY BANK of DALLAS, GA
2. LEGACY BANK of MILWAUKEE, WI
3. THE BANK OF COMMERCE of WOOD DALE, IL
4. BANK OF LAS VEGAS, of LAS VEGAS, NV
5. MID CITY BANK, INC. of OMAHA, NE
6. FIRST NATIONAL BANK OF CENTRAL FLORIDA of WINTER PARK, FL
7. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
8. THE FIRST NATIONAL BANK OF OLATHE of OLATHE, KS
9. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
10. OPTIMUMBANK of PLANTATION, FL
11. MCINTOSH STATE BANK of JACKSON, GA
12. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
13. VALLEY COMMUNITY BANK of SAINT CHARLES, IL
14. THE FIRST NATIONAL BANK OF FLORIDA of MILTON, FL
15. SUNRISE BANK OF ARIZONA of PHOENIX, AZ
16. CORTEZ COMMUNITY BANK of BROOKSVILLE, FL
17. WESTERN SPRINGS NATIONAL BANK AND TRUST of WESTERN SPRINGS, IL
18. PISGAH COMMUNITY BANK of ASHEVILLE, NC
19. HIGH TRUST BANK of STOCKBRIDGE, GA
20. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
21. CREEKSIDE BANK of WOODSTOCK, GA
22. FRIENDS BANK of NEW SMYRNA BEACH, FL
23. ALL AMERICAN BANK of DES PLAINES, IL
24. THE FIRST STATE BANK of STOCKBRIDGE, GA
25. CENTRUST BANK, N.A. of NORTHBROOK, IL
26. BARTOW COUNTY BANK of CARTERSVILLE, GA
27. THE PARK AVENUE BANK of VALDOSTA, GA
28. HABERSHAM BANK of CLARKESVILLE, GA
29. FIRST INTERNATIONAL BANK of PLANO, TX
30. PATRIOT BANK OF GEORGIA of CUMMING, GA
31. BUILDERS BANK of CHICAGO, IL
32. SOUTHERN COMMERCE BANK, NA of TAMPA, FL
33. ATLANTIC SOUTHERN BANK of MACON, GA
34. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
35. SUNRISE BANK of VALDOSTA, GA
36. FIRST COMMERCIAL BANK of TAMPA, FL
37. LANDMARK BANK OF FLORIDA of SARASOTA, FL
38. DOUGLAS COUNTY BANK of DOUGLASVILLE, GA
39. PIEDMONT COMMUNITY BANK of GRAY, GA
40. COLORADO CAPITAL BANK of CASTLE ROCK, CO
Disclaimer:
The content of this web site is for general information purposes only and does not constitute advice. The author tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors should not act upon content or information without first seeking appropriate professional advice.
The author accepts no responsibility for and excludes all liability in connection with browsing this Web site, use of information or downloading any materials from it, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements. The information at this Web site might include opinions or views which, unless expressly stated otherwise, are not necessarily those of the author.
All content and information might be changed or updated without notice.
1. FIRST CHOICE COMMUNITY BANK of DALLAS, GA
2. LEGACY BANK of MILWAUKEE, WI
3. THE BANK OF COMMERCE of WOOD DALE, IL
4. BANK OF LAS VEGAS, of LAS VEGAS, NV
5. MID CITY BANK, INC. of OMAHA, NE
6. FIRST NATIONAL BANK OF CENTRAL FLORIDA of WINTER PARK, FL
7. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
8. THE FIRST NATIONAL BANK OF OLATHE of OLATHE, KS
9. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
10. OPTIMUMBANK of PLANTATION, FL
11. MCINTOSH STATE BANK of JACKSON, GA
12. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
13. VALLEY COMMUNITY BANK of SAINT CHARLES, IL
14. THE FIRST NATIONAL BANK OF FLORIDA of MILTON, FL
15. SUNRISE BANK OF ARIZONA of PHOENIX, AZ
16. CORTEZ COMMUNITY BANK of BROOKSVILLE, FL
17. WESTERN SPRINGS NATIONAL BANK AND TRUST of WESTERN SPRINGS, IL
18. PISGAH COMMUNITY BANK of ASHEVILLE, NC
19. HIGH TRUST BANK of STOCKBRIDGE, GA
20. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
21. CREEKSIDE BANK of WOODSTOCK, GA
22. FRIENDS BANK of NEW SMYRNA BEACH, FL
23. ALL AMERICAN BANK of DES PLAINES, IL
24. THE FIRST STATE BANK of STOCKBRIDGE, GA
25. CENTRUST BANK, N.A. of NORTHBROOK, IL
26. BARTOW COUNTY BANK of CARTERSVILLE, GA
27. THE PARK AVENUE BANK of VALDOSTA, GA
28. HABERSHAM BANK of CLARKESVILLE, GA
29. FIRST INTERNATIONAL BANK of PLANO, TX
30. PATRIOT BANK OF GEORGIA of CUMMING, GA
31. BUILDERS BANK of CHICAGO, IL
32. SOUTHERN COMMERCE BANK, NA of TAMPA, FL
33. ATLANTIC SOUTHERN BANK of MACON, GA
34. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
35. SUNRISE BANK of VALDOSTA, GA
36. FIRST COMMERCIAL BANK of TAMPA, FL
37. LANDMARK BANK OF FLORIDA of SARASOTA, FL
38. DOUGLAS COUNTY BANK of DOUGLASVILLE, GA
39. PIEDMONT COMMUNITY BANK of GRAY, GA
40. COLORADO CAPITAL BANK of CASTLE ROCK, CO
Disclaimer:
The content of this web site is for general information purposes only and does not constitute advice. The author tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Visitors should not act upon content or information without first seeking appropriate professional advice.
The author accepts no responsibility for and excludes all liability in connection with browsing this Web site, use of information or downloading any materials from it, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements. The information at this Web site might include opinions or views which, unless expressly stated otherwise, are not necessarily those of the author.
All content and information might be changed or updated without notice.
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