with the economy beginning to show signs of life, posts here will be less frequent. But we have a total of 123 bank failures so far for 2009.
Seven more banks fail
July 6, 2009 — ColioneSeven more banks fail, pushing 2009 totals to 52, over double total failures for all of 2008. The latest banks to fail are based in Illinois and Texas. The six banks in Illinois were all owned by the same family and all had the same exposure risk due to similar business models. A total of 12 banks have failed in Illinois this year.
The failure in Texas is the first in the state this year.
Total cost to the FDIC from the seven recent failures is $314.3 Billion pushing total cost this year for all failures to just over $12 Billion. For all of 2008 failures cost $17.6 Billion.
Who gets what?
- The State Bank of Lincoln (Lincoln, IL) will receive all deposits from John Warner Bank (Clinton, IL). Total deposits $64 million. All three branches will be converted.
- The First National Bank of Beardstown (Beardstown, IL) will assume all assets and deposits of The First Bank of Winchester (Winchester, IL). Total assets of $36 million and desposits of $34 million. Both branches will be converted.
- The Harvard State Bank (Harvard, IL) will assume almost all of the assets and all of the deposits of Rock River Bank (Oregon, IL). Assests total $77 million and deposits of $75.8 million. Assets totalling $72.9 million will be acquired by The Harvard State Bank, the balance will be held by the FDIC to dispose of later. All four branches will converted.
- Galena State Bank and Trust (Galena, IL) will assume all deposits from Elizabeth State Bank (Elizabeth, IL) and $52.3 million of it’s $55.5 total assets, the balance will be held by the FDIC to dispose of at a later date. Both branches will be converted.
- First Financial Bank, N.A. (Terre Haute, Indiana) will assume all deposits of The First National Bank of Danville (Danville, IL) and $148 million of it’s $166 million. All seven branches will be converted.
- State Bank of Texas (Irving, TX) will take over all deposits and assets of Millennium State Bank of Texas (Dallas, TX). I’ts one branch will be converted.
- PrivateBank and Trust Company (Chicago, IL) will assume all deposits of Founders Bank (Worth, IL) and $888.4 million of it’s $962.5 million of it’s assets, the FDIC will retain the remaining assets until a remaining date. All eleven branches will be converted.
Another Bank Failure
March 12, 2009 — Colione
The FDIC has taken over Freedom Bank of Georgia, the 17th bank failure this year. The take over will cost the FDIC about $36 million. The bank had $173 million in assets and $161 million in deposits as of March 4, 2009. Northeast Bank of Georgia based in Lavonia, GA will assume all of the deposits and acquire about $167 million in assets. Freedom Bank had 4 branches that will be converted to Northeast Bank branches.
Customers of Freedom Bank as usual will be able to access their accounts as normal through the transition.
HSBC cutting positions and branches
March 3, 2009 — ColioneHSBC has announced it will close hundreds of US branches and lay off over 6,000 in an effort to cut costs and reduce it’s exposure to the US mortgage market. The financial firm will shutter all of it’s HFC and Beneficial bank branches that specialize in consumer and mortgage lending. As of Monday, the branches will no longer be making loans, and employees are beginning to receive notice of layoffs.
The closures will not affect existing loans and loans will continue to be made at HSBC locations.
2 More Banks Closed
March 3, 2009 — ColioneThe FDIC took over 2 more banks and will be taken over by other banks. The combined total loss to the FDIC is just about $100 million.
Security Savings Bank of Henderson Nevada will be taken over by The Bank of Nevada. The bank had $238.3 million in assets and $175.2 million in deposits as of Dec 31, 2008.
Heritage Community Bank of Glenwood, Illinois had assets of $232.9 million in assets and $218.6 million in deposits as of Dec 5, 2008. MB Financial Bank N.A. agreed to acquire off of Heritage’s deposits and $230.5 million of the banks assets.
As usual, all account access, debit cards, bank accounts and checks can be used as normal.
4 more banks fail
February 17, 2009 — ColioneA total of 4 banks failed on Friday and were taken over by the FDIC. Deposits were transferred to other area banks the same day.
Riverside Bank of Cape Coral Florida will have it’s 9 branches and $424 million in deposits taken over by TIB Bank of Naples Florida. All nine branches will reopen today as TIB branches.
Sherman County Bank of Loup City Nebraska will have it’s deposits taken over by Heritage Bank based in Wood River Nebraska. Sherman County Bank’s four branches will reopen today as Heritage Bank branches.
Corn Belt Bank and Trust Company of Pittsfield Illinois will have it’s deposits turned over to The Carlinville Naional Bank of Carlinville Illinois. Corn Belt Bank and Trust had two branches which reopened today as branches of The Carlinville National Bank.
Pinnacle Bank of Beaverton Oregon will have it’s deposits turned over to Washington Trust Bank of Spokane Washington.
The customers of these banks will be able to use their accounts normally including ATM cards, checks and debit cards. Altogether, the bank failures announced Friday will cost the FDIC about $341.6 million.
3 More Banks Closed
February 8, 2009 — ColioneState regulators closed down three banks today. If you’re keeping count, that’s 9 so far this year.
FirstBank Financial Services based in McDonough, GA will have deposits taken over by Regions Bank based in Birmingham, AL. All four branches will reopen as Region Bank on Monday.
Alliance Bank based in Culver City, CA will have it’s deposits assumed by California Bank & Trust based in San Diego, CA. All five branches will be turned over and open Monday morning.
County Bank of Merced, CA was closed late today and deposits will be assumed by Westamerica Bank of San Rafael, CA. 39 branches will reopen as Westamerica branches. Thoe branches with Saturday hours will open tomorrow, the rest will follow on Monday.
All customers will transfer to the new bank and they can continue to use their accounts as normal over the weekend including checks, debit, atm and credit cards. Of course, those that have loans with these banks will be expected to continue making payments as usual.
All together, the 3 failures will cost the FDIC about $452 million.
Morgan Stanley to cut 1,880 jobs
February 4, 2009 — Colione
Morgan Stanley announced it plans to cut 1,880 jobs, or about 3-4% of it’s workforce. No cuts would come from it’s financial advisor network. The cuts will come mostly from back office jobs, which mostly includes those that processed trades.
3 regional banks closed by regulators
February 3, 2009 — ColioneThe year to date total of failed banks now sits at 6.
Suburban Federal Savings Bank based in Crofton, MD was closed by the FDIC and will reopen as branches of Bank of Essex based in Virginia and includes a loss-share agreement.
Ocala National Bank’s four branches were closed by the FDIC and will be purchased by CenterState Bank based in Winter Haven, FL.
The FDIC was unable to find a buyer for another bank, MagnetBank, which had only one branch. All deposits in the bank are covered under the FDIC insurance program and checks were to be mailed out to depositors today for their entire amount. The single branch was located in Salt Lake City, Utah.
ING (Dutch) to cut 7,000
January 26, 2009 — ColioneThe Dutch bases finance and insurance firm ING to cut 7,000 in effort to save $1.4 billion.
