Nothing Safe About Haven Trust Bank Florida

This week's first shutdown belongs to Haven Trust Bank Florida of Ponte Vedra Beach, Florida. At 28th on the list, Haven had approximately $148.6 million total assets and $133.6 million in total deposits. First Southern Bank (6308th) of Boca Raton, FL has agreed to assume nearly all deposits for the former bank.

The other bank to close this week was 90th ranked North County Bank of Arlington, WA. It had about $288.8 million total assets and $276.1 million in total deposits. Whidbey Island Bank (3646th) of Cupeville, WA has agreed to assume the deposits.

ISN Bank and Several Others ISNo More

This week's first failed bank is ISN Bank of Cherry Hill, NJ. You might remember ISN as the number 2 bank on the very first list that was posted here. After some model refinements, the bank managed to fall out of the then 25, now 40 listed firms. These listed banks are only the riskiest though and there are quite a few others that the models suggest are ripe for failure. ISN was such a bank as it still scored a dangerous 69th in the second quarter rankings. It had approximately $81.6 million in total assets and $79.7 million in total deposits when it failed. 1011th ranked New Century Bank of Phoenixville, PA has agreed to assume nearly all deposits of shuttered ISN Bank.

Georgia based banks, which last week topped the list in terms of most at risk, were particularly hard hit this week with 3 closures. All 3 banks were in the Top 40 and their branches were all acquired by a very sound Community & Southern Bank (5280th) of Carrollton, GA. Ohio based Bramble Bank and Wisconsin's Maritime Savings Bank also failed this week. In rank order:

1. Number 4, Bank of Ellijay of Ellijay, GA with approximately $168.8 million total assets and $160.7 million in total deposits closed.

2. Number 16, First Commerce Community Bank of Douglasville, GA with approximately $248.2 million total assets and $242.8 million in total deposits.

3. Number 27, The Peoples Bank of Winder, GA with approximately $447.2 million total assets and $398.2 million in total deposits.

4. Number 30, Bramble Savings Bank, Milford, OH with approximately $47.5 million total assets and $41.6 million in total deposits was closed. Foundation Bank of Cincinnati, OH (OTS regulated) has agreed to assume nearly all deposits.

5. Un-ranked (OTS) Maritime Savings Bank of West Allis, WI with approximately $350.5 million total assets and $248.1 million in total deposits. North Shore Bank, FSB (also OTS) of Brookfield, WI has agreed to assume nearly all deposits.

Cant See Past the Horizon

With the FDIC taking the last few weeks off from closing any banks, the Blog decided to take a week's hiatus itself. But this Fed Friday, the FDIC is back with their first closure of the month, Horizon Bank of Bradenton, Florida. Horizon Bank ranked 104th on the current list, placing it outside the Top 40 yet still fairly high in terms of failure risk (top 1.5% of banks). Horizon was a very small bank with approximately $187.8 million total assets and $164.6 million in total deposits. Bank of the Ozarks (3652nd) of Little Rock, AR agreed to assume nearly all deposits. Bank of the Ozarks purchased another defunct bank, Woodlands Bank of Bluffton, SC in mid-July.

With just one closing this week, banks are showing a remarkable resilience. How long it will last is anyone's guess. But chances are there will be a lot more failures to come in areas that are still being heavily impacted by the recent recession and housing crisis. In particular Georgia has 8 banks remaining (not yet closed) in the Top 40, Florida has 7 and Arizona and Wisconsin both have 3.

Live to Loan Another Day

Fed Friday was unusually quiet this week as the regulators took a late August holiday from closing any banks. This is the first week since early July in which no banks failed. During this summer stretch, 32 banks had been closed over 7 Fridays.

The Bank Blog decided to take this momentary calm to double check our models and review some new data that came in. One bank, Michigan Commerce Bank, has drawn greater regulatory scrutiny recently. This has pushed the bank from 9th to 4th most likely to fail (with Shorebank and Community National Bank at Bartow at 5th and 6th ranked respectively already having already failed).

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.

The New "Top 25"

The underlying data has been updated and a new, preliminary list is ready. The new "Top 25" is actually a Top 40 based on the number of failures we saw in the last 3 months. Banks that remain on the list (or have returned from an earlier version) are in bold. Banks that have closed are in italics.

1. SUNRISE BANK OF ATLANTA of Atlanta, GA
2. PISGAH COMMUNITY BANK of Asheville, NC
3. SUNRISE BANK OF ARIZONA of Phoenix, AZ
4. BANK OF ELLIJAY of Ellijay, GA
5. SHOREBANK of Chicago, IL
6. COMMUNITY NATIONAL BANK AT BARTOW of Bartow, FL
7. SOUTHERN COMMERCE BANK, NA of Tampa, FL
8. FIRST SOUND BANK of Seattle, WA
9. MICHIGAN COMMERCE BANK of Ann Arbor, MI
10. FIRST BANK OF JACKSONVILLE of Jacksonville, FL
11. HILLCREST BANK of Overland Park, KS
12. SUNBANK, NATIONAL ASSOCIATION of Phoenix, AZ
13. ALL AMERICAN BANK of Des Plaines, IL
14. PREMIER BANK of Jefferson City, MO
15. BANK OF LAS VEGAS of Las Vegas, NV
16. FIRST COMMERCE COMMUNITY BANK of Douglasville, GA
17. TREATY OAK BANK of Austin, TX
18. GULF STATE COMMUNITY BANK of Carrabelle, FL
19. CENTRAL PACIFIC BANK of Honolulu, HI
20. WAKULLA BANK of Crawfordville, FL
21. FIRST BANKING CENTER of Burlington, WI
22. PLANTERSFIRST of Cordele, GA
23. TIFTON BANKING COMPANY of Tifton, GA
24. FIRST COMMUNITY BANK of Taos, NM
25. COPPER STAR BANK of Scottsdale, AZ
26. SHORELINE BANK of Shoreline, WA
27. THE PEOPLES BANK of Winder, GA
28. HAVEN TRUST BANK FLORIDA of Ponte Verda Beach, FL
29. CHARTER OAK BANK of Napa, CA
30. BRAMBLE SAVINGS BANK of Milford, OH
31. GORDON BANK, THE of Gordon, GA
32. FIRST CHOICE COMMUNITY BANK of Dallas, GA
33. PROGRESS BANK OF FLORIDA of Tampa, FL
34. AMERICANA COMMUNITY BANK of Sleepy Eye, MN
35. INDEPENDENT NATIONAL BANK of Ocala, FL
36. HANMI BANK of Los Angeles, CA
37. STATE CENTRAL BANK of Keokuk, IA
38. EVERGREEN STATE BANK of Stoughton, WI
39. BANK MIDWEST, NATIONAL ASSOCIATION of Kansas City, MO
40. THE BANK OF ASHEVILLE of Asheville, NC

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The Final Failure of the Quarter

This week marks the 13th week of The Bank Blog. Hopefully, new predictions will be coming sometime during the next week representing the next quarter.

Our final closer was number 55 on the list, Palos Bank and Trust Company of Palos Heights, IL. Palos continues the trend of recent bank failures in small banks, specifically those with assets under $1 billion. As of the end of June, Palos Bank and Trust had total assets of approximately $493.4 million and $467.8 million in total deposits. First Midwest Bank of Itasca, IL (4538th) has agreed to assume all deposits.

So how did we do?

38 banks were seized during the quarter.

31 banks were included in our sample (the other 7 were OTS regulated and not covered). This was .44% of the 7,101 banks in the sample

4 of the Top 5 banks failed.
5 of the Top 10.
13 of the Top 25.
28 of the Top 100.

The worst 1.5% of banks by rankings included over 90% of failures.

The lowest ranked bank to fail was #262 Home Valley Bank.