One Failure This Week

The 235th riskiest bank on our list, Waukegan Savings Bank of Waukegan, Illinois, was closed today by state regulators. The approximately $88.9 million in total assets and $77.5 million in total deposits of the former bank were acquired by First Midwest Bank (2616th) of Itasca, Illinois. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $19.8 million. While not as risky as the typical failure on our list, it should be noted that banks at this level still have an expected failure rate between 10 and 15% within the next year.

Unlucky Thirteen Fails

This week, thirteenth-ranked Jasper Banking Company of Jasper, Georgia was closed by the Georgia Department of Banking and Finance. Stearns Bank National Association (6848th) of St. Cloud, Minnesota has agreed to assume the $213.1 million deposits and purchase essentially all of the $216.7 million in assets of the failed bank. The FDIC and Stearns Bank N.A. entered into a loss-share transaction on $106.0 million of Jasper Banking Company's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.1 million. This will add considerably to the $1.3 billion in assets already controlled by Stearns Bank N.A. It has been a significant participant in failed bank acquisitions in the past. This is the eighth such banking operation acquired by Stearns via closure.

Two More Top 40 Failures

Five banks have failed in one of the busiest weeks for regulators in months. Two of these are in our Top 40 (another falling just short) and all rank within the weakest 100 banks.

Eleventh-ranked, Georgia Trust Bank of Buford, Georgia, was closed today by the Georgia Department of Banking and Finance. Community & Southern Bank (5121st)  of Atlanta, Georgia, to assume all of the approximately $117.4 million in total deposits as well as $111.5 million of the former bank's $119.8 million in total assets. With over $2 billion dollars in assets, Community & Southern Bank is a frequent acquirer of failed banks.  It has previously taken over 5 other banks, including 3 in one day on Sept. 17th, 2010. Community & Southern Bank also entered into a loss-share transaction with the FDIC on $65.9 million of Georgia Trust Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million. 

Twelfth-ranked, Royal Palm Bank of Florida located in Naples, Florida, was closed today by the Florida Office of Financial Regulation,  First National Bank of the Gulf Coast (5636th) also of Naples, Florida, to assume all of the approximately $87.0 million in total assets and $85.1 million in total deposits. The estimated cost to the DIF will be $13.5 million.

Falling just short of the list, 52nd-ranked, First Cherokee State Bank of Woodstock, Georgia, was also closed today by the Georgia's regulators. Community & Southern Bank also acquired the approximately $222.7 million in total assets and $193.3 million in total deposits. Similar to the other deal, The FDIC and Community & Southern Bank entered into a loss-share transaction on $141.8 million of First Cherokee State Bank's assets. The estimated cost to the DIF will be $36.9 million.

Later in the evening, 90th-ranked, Heartland Bank of Leawood, Kansas was closed by The Kansas Office of the State Bank Commissioner. Metcalf Bank (6542nd) of Lees Summit, Missouri has agreed to acquire all of the approximately $102.6 million in total deposits. In addition they agreed to purchase essentially all of the approximatel $110 million in assets pursuant to a loss-share transaction on $54.3 million of the former Heartland Bank's assets. The estimated cost to the DIF will be $3.1 million.

98th-ranked, Second Federal Savings and Loan Association of Chicago, was closed today by the Office of the Comptroller of the Currency (OCC). Hinsdale Bank & Trust Company (3508th) of Hinsdale, Illinois has agreed assume the roughly $175.9 million in total deposits of Second Federal Savings. However, Hinsdale Bank & Trust Company has only agreed to purchase approximately $14.2 million in largely cash assets. The remainder or the nearly $200 million assets will be retained by the FDIC.  As a result, the FDIC estimated the cost to the DIF will be $76.9 million.

Number Three Bank Fails

The third-ranked bank on our list, Glasgow Savings Bank of Glasgow, Missouri was shut down today by regulators. Glasgow Savings Bank had approximately $24.8 million in total assets and $24.2 million in total deposits which were assumed by Regional Missouri Bank (4362nd) of Marceline, Missouri. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $0.1 million.

Another Top 40 Failure

Regulators did not take the week off in deciding that 14th-ranked Montgomery Bank & Trust of Ailey, Georgia needed to be closed today.  Ameris Bank of Moultrie, Georgia agreed to assume all of $164.4 million in deposits of Montgomery Bank & Trust. Ameris Bank, a frequent acquirer of seized  banks over the last few years agreed only to purchase approximately $12.4 million in largely cash assets, however. As a result, the FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be a significant $75.2 million in terms of the percentage of assets of the failed bank. Ameris Bank is itself a relatively weak bank with a ranking of 435th out the 7300 currently in our ratings. This may explain their inability to assume the assets of another failed bank.

Second Straight Week of No Failures

There have been no bank failures to report this week. As new information comes in The Bank Blog will be updated.

No New Failures

For the week ending Friday, June 22nd there have been no report bank failures.