The Spring 2013 Top 40

The Bank Blog has ranks the Top 40 most likely to fail, regulated, deposit taking banks in the United States. 

The Bank Blog continues to demonstrate well its ability to predict bank distress.  Bank failures declined again this quarter relative to last. In all, there were only ten failures since the creation of the last Top 40 list. Of these banks, seven were on the list and four were in the top ten. Three failed banks belonged to our highlighted, Capital Bancorp Limited.

We would also like to caution our readers not to infer that those banks leaving the list are now safe.  All but one of the departing banks remains among the riskiest one hundred. Departing banks often return on future lists. Only returning banks from the prior list are listed in bold and newly failed banks are listed in italics. Remaining Capital Bancorp Limited affiliated banks are listed with an asterisk before their name.

1. METROBANK of CHICAGO, IL
2. COMMUNITY SOUTH BANK of PARSONS, TN
3. UNITED MIDWEST SAVINGS BANK of DE GRAFF, OH
4. EASTERN SAVINGS BANK of HUNT VALLEY, MD
5. BANKS OF WISCONSIN of KENOSHA, WI 

6. ARCHER BANK of CHICAGO, IL
7. THE PEOPLES BANK of COVINGTON, GA   
8. TEXAS COMMUNITY BANK, N.A. of THE WOODLANDS, TX
9. PLAZA BANK of NORRIDGE, IL
10. STATE BANK OF HERSCHER of HERSCHER, IL  

11. FIRSTSECURE BANK AND TRUST CO. of PALOS HILLS, IL
12. * MICHIGAN COMMERCE BANK of ANN ARBOR, MI
13. BEACH COMMUNITY BANK of FORT WALTON BEACH, FL
14. THE COLUMBIA SAVINGS BANK of CINCINNATI, OH
15. ANCHOR COMMERCIAL BANK of JUNO BEACH, FL
16. SOUTHERN BANK AND TRUST COMPANY of MOUNT OLIVE, NC
17. GOLD CANYON BANK of GOLD CANYON, AZ
18. FIRST COMMUNITY BANK OF SOUTHWEST FLORIDA of FORT MYERS FL
19. AMERICAN METRO BANK of CHICAGO, IL
20. AZTECAMERICA BANK of BERWYN, IL
21. SUPERIOR BANK of HAZELWOOD, MO 
22. GEORGIA PRIMARY BANK of ATLANTA, GA
23. OPTIMUMBANK of PLANTATION, FL
24. BANK OF WAUSAU of WAUSAU, WI
25. FIRST CITY BANK OF FLORIDA of FORT WALTON BEACH, FL
26. NORTH COMMUNITY BANK of  CHICAGO, IL
27. INDEPENDENCE FEDERAL SAVINGS BANK of WASHINGTON, DC
28. STATE CENTRAL BANK of  KEOKUK, IA
29. THE FOSTER BANK of CHICAGO, IL
30. GUARANTY BANK of BROWN DEER, WI
31. * BANK OF LAS VEGAS of LAS VEGAS, NV
32. MOUNTAIN NATIONAL BANK of SEVIERVILLE, TN
33. WESTSIDE BANK of HIRAM, GA
34. GWINNETT COMMUNITY BANK of DULUTH, GA
35. U.S. CENTURY BANK of MIAMI, FL
36. EASTSIDE COMMERCIAL BANK of CONYERS, GA
37. PARK CITIES BANK of DALLAS, TX
38. PNA BANK DOWNERS of GROVE, IL
39. SOUTHERN COMMERCE BANK, N.A. of TAMPA, FL
40. FIRST NATIONAL BANK of EDINBURG, TX 



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No New Failures

As of 5:15 pm EST there have been no failures. The Bank Blog will be updated throughout the evening as new information arrives.

Another Capitol Bancorp Limited Failure

In unusual move, regulators did not wait until a Friday to shut down Central Arizona Bank of Scottsdale, Arizona. On Tuesday, the Arizona Department of Financial Institutions decided to seize the third affiliate of Capitol Bancorp Limited within one week. Central Arizona Bank was fifteenth on the most recent list. The $31.6 million in bank by total assets was acquired by Western State Bank (1963rd) of Devils Lake of North Dakota along with its $30.8 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.6 million. 

Pisgah Community Bank Finally Fails

After being the first or second worst most risky bank a total of ten times, Pisgah Community Bank of Asheville, North Carolina finally succumbed to regulators and was close today. Despite the multitude of efforts by owner Capital Bancorp Limited to cross-subsidize and otherwise restructure the bank, it has never been able to steady the sinking ship.  As of March 31, 2013, Pisgah Community Bank had approximately $21.9 million in total assets and $21.2 million in total deposits remaining. Of these, Capital Bank, N.A. (2226th) of Rockville, Maryland, has agreed to assume all of the deposits along with purchasing approximately $19.8 million of the failed bank's assets. The FDIC estimates that cost to the Deposit Insurance Fund (DIF) will be $8.9 million. 


Another "Top Ten" failure this week was Sunrise Bank of Valdosta, Georgia. the fourth-ranked bank on our list was closed today by state regulators. The failed bank had approximately $57.8 million in total deposits which were assumed by Synovus Bank (2742nd) of Columbus, Georgia. Synovus Bank also acquired about $13.2 million of the failed bank's assets while the remainder of the approximately $60.8 million in total assets stayed with the FDIC. The FDIC estimates that cost to the DIF will be $17.3 million.

 

No New Failures

As of 5:10 pm EST there have been no failures. The Bank Blog will be updated throughout the evening as new information arrives.

Another Week, Another Top Forty Failure

Today, twenty-seventh ranked Douglas County Bank of Douglasville, Georgia, was closed by the Georgia Department of Banking & Finance. Hamilton State Bank of Hoschton (6027th), Georgia has has agreed to assume the $314.3 million in total deposits of the former Douglas County Bank. Of the approximately $316.5 million in total assets, Hamilton State Bank has agreed only to purchase approximately $260.9 million of the failed bank's assets. Among these, the FDIC and Hamilton State Bank entered into a loss-share transaction on $159.2 million of Douglas County Bank's assets. As a result, the FDIC estimates a relatively large cost to the Deposit Insurance Fund (DIF) of $86.4 million.


In a relative surprise, 188th ranked Parkway Bank of Lenoir, North Carolina, was also closed today by its state regulators. While among the top 3% in terms of risk, the bank had projected chance of closing in the next year of less than 10%. These banks are generally more likely to be re-capitalized or sold prior to entering receivership. Frequent acquirer of failed banks, CertusBank, N.A., (1875th) of Easley, South Carolina, has agreed to assume the $103.7 million in total deposits of the former Parkway Bank. In addition it has acquired $99.2 million of the failed banks assets with the remainder of the the approximately $108.6 million retained by the FDIC for later disposition. The FDIC estimates that the cost to the  DIF will be $18.1 million. 

Two Top Ten Failures

Showing that all is still not well for some banks, three more financial institutions failed this week. The first failure was third-ranked First Federal Bank of Lexington. It was closed today by the Office of the Comptroller of the Currency. Your Community Bank (5807th) of New Albany, Indiana has agreed to assume all of the approximately $93.9 million in deposits of the former First Federal Bank. In addition, Your Community Bank has purchases nearly all of the approximately $100.1 million in total asset. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.7 million.


The second failure was fifth-ranked Heritage Bank of North Florida of Orange Park, Florida, was closed today by the Florida Office of Financial Regulation. FirstAtlantic Bank (3301st) of Jacksonville, Florida has agreed to purchase essentially all of the $110.9 million in total assets as well as assume the approximately $108.5 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $30.2 million.

92nd-ranked Chipola Community Bank of Marianna, Florida, was also closed by state regulators today. The very small bank, approximately $39.2 million in total assets and $37.6 million in total deposits, was taken over by First Federal Bank of Florida (4470th) of Lake City, Florida. The FDIC estimates that the cost to the DIF will be $10.3 million.