Banking Giant Doral Bank Fails

While not in the league of a Wells Fargo or a J.P. Morgan Chase, Doral Bank of San Juan, Puerto Rico, is one of the largest banks to have been shut down in the 21st century. 23rd on the Bank Blog rankings, Doral Bank was closed today by the Office of the Commissioner of Financial Institutions of Puerto Rico. Doral is so large that no one bank could accommodate could acquire all of the assets and/or deposits. Banco Popular de Puerto Rico, of Hato Rey, Puerto Rico, has agreed to acquire the banking operations, including all the deposits, of Doral Bank.

However, Banco Popular will operate only eight of Doral Bank's 26 former branches. FirstBank Puerto Rico of Santurce, Puerto Rico, will operate and assume the deposits of 10 other branches in Puerto Rico. Banco Popular's affiliated bank, Banco Popular North America, will operate all three locations in New York City. Centennial Bank of Conway, Ark., will operate and assume the deposits of Doral Bank's five branches in the panhandle area of Florida.

In all Doral Bank had approximately $5.9 billion in total assets and $4.1 billion in total deposits as of their most recent regulatory filing. Banco Popular will purchase $3.25 billion of Doral Bank's assets. The FDIC entered into two separate agreements to sell $1.3 billion of Doral Bank's assets to other parties. Those sales are expected to close in 30 days. The FDIC will retain the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $748.9 million.

A Note So Capital Idea

The 20th riskiest bank on our most recent list, Capitol City Bank & Trust Company of Atlanta, Georgia, was closed today by state regulators. As of December 31, 2014, the bank had approximately $272.3 million in total assets and $262.7 million in total deposits. Essentially all of both the assets and deposits were acquired by First-Citizens Bank & Trust Company (650th) of  Raleigh, North Carolina. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $88.9 million.

Second Failure of the Year

At thirty-third on the list, Highland Community Bank of Chicago, Illinois, was closed last week the State of Illinois' Department of Financial & Professional Regulation—Division of Banking. United Fidelity Bank, fsb, (5216th on the list) of Evansville, Indiana has agreed to assume all the of the $53.5 million in total deposits and $54.7 million in total assets of the former Highland Community Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.8 million.

First Failure of the New Year

It took two full weeks before the first bank foreclosure of the new year. 59th-ranked First National Bank of Crestview based in Crestview, Florida, was closed by the OCC today.   First NBC Bank (1226th), of New Orleans, Louisiana, has agreed to assume all of the approximately $78.6 million in total deposits of First National Bank of Crestview. However, it will only acquire approximately approximately $62.0 million of the failed bank's $79.7 million in total assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.4 million.

Northern Star Goes Nova

Northern Star Bank of Mankato, Minnesota is no longer shining as it was closed today by the Minnesota Department of Commerce today. The 74th-ranked bank on the list had only $18.8 million in total assets and $18.2 million in total deposits at the time it failed.  BankVista (1498th) of Sartell, Minnesota has agreed to assume all of the deposits and purchase all of the assets of the former Northern Star Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be a relatively steeo $5.9 million.

El Paseo Bank Passes On To The AfterLife

Twenty-fourthed ranked Frontier Bank, FSB or Palm Desert, California was closed today by the state regulators. Doing business as El Paseo Bank the approximately $86.4 million in total assets and $82.1 million in total deposits found itself acquired by Bank of Southern California, N.A. (4413th) based in San Diego, California. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.7 million.

Top Bank Fails

The number one bank on the most recent list, National Republic Bank of Chicago of Chicago, Illinois, was closed today by state regulators. Much larger than other recent bank failures, the National Republic Bank of Chicago had approximately $954.4 million in total assets and $915.3 million in total deposits. State Bank of Texas (6488th) based in Dallas, has agreed to assume all of deposits as well as having agreed to purchase approximately $626.1 million of the failed bank's assets. The FDIC will retain the remaining assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $111.6 million.