Wednesday, April 4, 2012

Bank Failure Friday: FDIC Seizes 1 Bank, NCUA Seizes 1 Credit Union

The FDIC closed 1 bank on Friday, March 30, 2012. Total bank failures for 2012 increased to 16. The NCUA seized 1 credit unions this week. Total credit union failures for 2012 increased to 6.

States where banks have been seized by the FDIC in 2012 (in alphabetical order): Florida 2, Georgia 4, Illinois 3, Indiana 1, Michigan 1, Minnesota 2, Pennsylvania 1, Tennessee 2. Georgia and Florida accounted for 36 total or 39% of all bank failures in 2011.

States where credit unions have been seized by the NCUA in 2012 (in alphabetical order): California 1, Colorado 1, New York 1, North Carolina 1, Pennsylvania 1, Wisconsin 1.

Banks Closed This Week

#16 Fidelity Bank, Dearborn, MI
* The Huntington National Bank, Columbus, OH assumes all of the deposits
* As of December 31, 2011, Fidelity Bank & Trust had approximately $818.2 million in total assets
* FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $92.8 million

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively - a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 annual bank failures are extrapolated from the weeks reported and failures year-to-date. The 2012 closings are currently estimated at 64.

FDIC Deposit Insurance Fund Cost of Failed Banks The total estimated cost to the FDIC Deposit Insurance Fund for the 2012 bank closures year-to-date is $1.23 billion. The most costly banks to the Deposit Insurance Fund (DIF) in 2012 year-to-date:
1 Tennessee Commerce Bank, Franklin, TN $416.8 million
2 The First State Bank, Stockbridge, GA $216.2 million
3 Fidelity Bank, Dearborn, MI $92.8 million
4 First Guaranty Bank & Trust Company of Jacksonville, Jacksonville, FL $82.0 million
5 BankEast, Knoxville, TN $75.6 million
6 Central Bank of Georgia, Ellaville, GA $67.5 million
7 Premier Bank, Wilmette, IL $64.1 million
8 Home Savings of America, Little Falls, MN $38.8 million
9 SCB Bank, Shelbyville, IN $33.9 million
0 Patriot Bank Minnesota, Forest Lake, MN $32.6 million

The next FDIC bank closings and NCUA credit union closings, if any, will most likely be announced on Friday, April 6, 2012. For a recap of 2011 bank failures, see Bank Failure Friday: 2011 Closings Final at 92 & Cost $7.18 Billion.

Failed Credit Unions The latest NCUA actions were:

#6 Shepherd’s Federal Credit Union of Charlotte, N.C.
* NCUA liquidated and closed on March 26, 2012

The National Credit Union Association (NCUA) has seized 6 credit unions in 2012:
2 are in conservatorship and managed by the NCUA
* Telesis Community Credit Union of Chatsworth, CA
* A M Community Credit Union of Kenosha, WI
2 have been liquidated and sold
* Saguache County Credit Union of Moffat, CO
* People Community Development Credit Union of Philadelphia, PA
1 has been liquidated and merged
* Eastern New York Federal Credit Union of Napanoch, NY
1 has been liquidated and closed
* Shepherd’s Federal Credit Union of Charlotte, N.C.

Seeking Alpha