Another Top Ten Failed Bank

This week marks the fourth Top Ten Failure for the list as Old Harbor Bank of Clearwater, Florida and three other banks failed.  The tenth ranked bank was taken over by 1^st United Bank (3802nd) of Boca Raton, Florida.  This is the third failed bank acquisition for 1^st United Bank having previously acquired the Bank of Miami and Republic Federal Bank in 2010 and 2009 respectively. The $1.26 billion bank by assets will grow considerably from Old Harbor Bank's approximately $215.9 million in total assets and $217.8 million in total deposits. 1^st United Bank entered into a loss-share transaction on $155.6 million of these assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $39.3 million.

32nd ranked Community Banks of Colorado of Greenwood, Colorado failed today and was acquired by Bank Midwest, National Association (5715th) of Kansas City, Missouri. This was the second failed bank acquired by Bank Midwest, the former being the Bank of Choice in July. Considerably larger than most recent failures Community Banks of Colorado had approximately $1.38 billion in total assets and $1.33 billion in total deposits. The FDIC and Bank Midwest have entered into a loss-share transaction on $714.2 million of Community Banks of Colorado's assets at an estimated overall cost of $224.9 million.

57th ranked Community Capital Bank of Jonesboro, Georgia, was closed today and acquired by State Bank and Trust Company (582nd) of Macon, Georgia. State Bank and Trust Company has been a major acquirer of failed banks having snapped up 12 to date.  With this purchase, they added approximately $181.2 million in total assets and $166.2 million in total deposits.  A loss-share transaction covers $141.3 and the overall cost to the DIF is estimated at a relatively costly $62.0 million.

96th ranked Decatur First Bank of Decatur, Georgia also failed this week after struggling with low regulator capital and a lack of profitability. Fidelity Bank (1368th) of Atlanta, Georgia acquired the approximately $191.5 million in total assets and $179.2 million in total deposits of the failed bank. Their agreement with the FDIC includes a loss-share transaction on $111.5 million and is expected to cost the DIF $32.6 million.

Top Bank Fails Along with Three Others

In the most recent failure this week number one ranked Country Bank of Aledo, Illinois was closed by state regulators.  Blackhawk Bank & Trust (2714th) of Milan, Illinois agreed to purchase approximately $113.3 million of the failed bank's $190.6 million in assets and assumed approximately $167.5 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66.3 million. 

The first failure of the week belonged to 17th ranked Piedmont Community Bank of Gray, Georgia.  The approximately $201.7 million in total assets and $181.4 million in total deposits were taken over by State Bank and Trust Company (582nd)  of Macon, Georgia. As part of the acquisition, the FDIC and State Bank and Trust Company entered into a loss-share transaction on $163.2 million of Piedmont Community Bank's assets. The estimated cost to the DIF will be about $71.6 million.

34th ranked Blue Ridge Savings Bank, Inc. of Asheville, North Carolina also closed today. The Bank of North Carolina (617th) of Thomasville, North Carolina has agreed to take over the approximately $161.0 million in total assets and $158.7 million in total deposits of the former bank. The purchase agreement includes a loss-share transaction on $143.2 million of Blue Ridge Savings Bank, Inc.'s assets.  The estimated cost to the DIF is $38.0 million.

82nd ranked (not listed) First State Bank of Cranford, New Jersey was the third bank to fail this week. Northfield Bank (formerly OTS regulated and un-ranked) of Staten Island, New York, to assume all of the deposits of First State Bank. First State Bank had approximately $204.4 million in total assets and $201.2 million in total deposits as of its last financial disclosure. The estimated cost to the DIF is $45.8 million.

Of note, nine banks have failed since the current Top 40 list came out and seven of these have been listed banks.  It is also interesting to see that two of the acquirers this week are clearly less sound banks than has typically been the case in the past. 

Two Top 40 Failures This Week

The Bank Blog continues to highlight the least sound banks as two more from the most recent list failed today:

The 23rd ranked, The RiverBank of Wyoming, Minnesota, was closed today by the Minnesota Department of Commerce. Central Bank of Stillwater, Minnesota, to purchase the approximately $417.4 million in total assets of the former RiverBank and assumed the approximately $379.3 million in total deposits. In order to limit the risk to the acquirer, The FDIC and Central Bank entered into a loss-share transaction on $339.3 million of these assets under a loss-share agreement. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $71.4 million.

The 33rd ranked Sun Security Bank of Ellington, Missouri also failed this week. The bank's approximately $355.9 million in total assets and $290.4 million in total deposits were taken over by Great Southern Bank of Springfield, Missouri was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Essentially all of the assets of the former Sun Security Bank, $351.9 million, were assumed under loss-share transaction. The FDIC estimates that the cost to the DIF will be $118.3 million.

Another Top Ten Failure

Today, eight-ranked First International Bank of Plano, Texas, was closed today by the Texas Department of Banking. The approximately $239.9 million in total assets and $208.8 million in total deposits from First International Bank were taken over by American First National Bank (4021st) of Houston, Texas. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $53.8 million.

Ninth-Ranked Bank Fails

The ninth-ranked Bank of the Commonwealth has become the first Top 40 failure since the new list was published. The Norfolk, Virginia, based bank was acquired by Southern Bank and Trust Company (1650th) of Mount Olive, North Carolina. The Bank of the Commonwealth was one of the larger banks to fail in sometime. It had approximately $985.1 million in total assets and $901.8 million in total deposits. Southern Bank and Trust Company assumed all deposits. However, it acquired only $924.3 million of the failed bank's assets, with $798.2 million of those under a loss-share transaction. The cost to the FDIC's Deposit Insurance Fund (DIF) will be $268.3 million, a substantial figure for a bank of this size. Later this evening, 101st-ranked Citizens Bank of Northern California based in Nevada City, California, was closed by state regulators., to assume all of the deposits of Citizens Bank of Northern California.Tri Counties previously acquired failed Granite Community Bank, N.A. in May of 2010. The roughly $288.8 million in total assets a $253.1 million in total deposits were acquired by Tri Counties Bank of Chico (2101st), California. The estimated cost to the DIF will be $37.2 million.

No New Failures

There were no reported closures this week.

The September 2011 Top 40

Each quarter The Bank Blog releases a new Top 40 ranking based on the most recent data available from various sources. The current version of the list should be viewed as preliminary, however, as technical changes to the data and other refinements often require minor updates.

With the added month of feedback, The Bank Blog's accuracy was well demonstrated. Of the 41 banks listed in May (it turns out there were two firms ranked 11th), 18 failed. Of the surviving 23 banks, 20 remain on the updated list. The Bank Blog would like to caution our readers not to infer that those banks leaving the list are now safe. None of those banks are currently ranked below the mid 80s. In all, banks that are or have been ranked on prior lists that have not failed still remain in the top 1.5% in terms of risk.

Returning banks are listed in bold and newly failed banks are listed in italics.

1. COUNTRY BANK of ALEDO, IL
2. PISGAH COMMUNITY BANK of ASHEVILLE, NC
3. FIRST SECURITY BANK OF NEVADA of LAS VEGAS, NV
4. COMMUNITYONE BANK, N.A. of ASHEBORO, NC
5. BANK OF LAS VEGAS of LAS VEGAS, NV
6. GREYSTONE BANK of RALEIGH, NC
7. FIRST GUARANTY BANK AND TRUST COMPANY of JACKSONVILLE, FL
8. FIRST INTERNATIONAL BANK of PLANO, TX  
9. BANK OF THE COMMONWEALTH of NORFOLK, VA  
10. OLD HARBOR BANK of CLEARWATER, FL
11. ALL AMERICAN BANK of DES PLAINES, IL
12. OPTIMUMBANK of PLANTATION, FL
13. 1ST COMMERCE BANK of NORTH LAS VEGAS, NV
14. SECURITY BANK, N.A. of NORTH LAUDERDALE, FL
15. CENTRUST BANK, NATIONAL ASSOCIATION of NORTHBROOK, IL
16. MICHIGAN COMMERCE BANK of ANN ARBOR, MI
17. PIEDMONT COMMUNITY BANK of GRAY, GA
18. MONTGOMERY BANK & TRUST of AILEY, GA
19. SUNRISE BANK of VALDOSTA, GA
20. FIDELITY BANK OF FLORIDA, N.A. of MERRITT ISLAND, FL
21. DOUGLAS COUNTY BANK of DOUGLASVILLE, GA
22. HARVEST BANK OF MARYLAND of ROCKVILLE, MD
23. THE RIVERBANK of WYOMING, MN  
24. SOUTHERN COMMERCE BANK, N.A. of TAMPA, FL
25. THE ROYAL PALM BANK OF FLORIDA of NAPLES, FL
26. BANK OF NAPLES of NAPLES, FL
27. WESTERN NATIONAL BANK of PHOENIX, AZ
28. FRIENDS BANK of NEW SMYRNA BEACH, FL
29. MID CITY BANK, INC. of OMAHA, NE
30. ROCKY MOUNTAIN BANK of WILSON, WY
31. THE FIRST STATE BANK of STOCKBRIDGE, GA
32. COMMUNITY BANKS OF COLORADO of GREENWOOD VILLAGE, CO
33. SUN SECURITY BANK of ELLINGTON, MO
34. BLUE RIDGE SAVINGS BANK, INC of ASHEVILLE, NC
35. BUILDERS BANK of CHICAGO, IL
36. GEORGIA TRUST BANK of BUFORD, GA
37. THE LEADERS BANK of OAK BROOK, IL
38. TRANSCAPITAL BANK of SUNRISE, FL
39. FIRST CAPITAL BANK of GUTHRIE, OK
40. VILLAGE BANK of SAINT FRANCIS, MN


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