Wednesday, May 30, 2012

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



The FDIC closed 1 bank (Alabama Trust Bank NA) on Friday, May 18, 2012. Total bank failures for 2012 increased to 24. The NCUA liquidated and sold 1 credit union (Wausau Postal Employees Credit Union). Total credit union failures for 2012 increased to 7.

#24 Alabama Trust Bank NA, Sylacauga, AL
* Southern States Bank, Anniston, AL assumes all of the deposits
* As of March 31, 2012, the bank had approximately $51.6 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $8.9 million
* The last bank closed in the state had been Superior Bank, Birmingham, AL on April 15, 2011

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

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 total 2012 closings are currently estimated at 62.






Failed Credit Unions


#7 Wausau Postal Employees Credit Union of Wausau, WI
* NCUA sold to CoVantage Credit Union of Antigo, WI on May 18, 2012

 The National Credit Union Association (NCUA) has seized 7 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

3 have been liquidated and sold
* Wausau Postal Employees Credit Union of Wausau, WI
* 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.

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 2.




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 $1.54 billion.



The most costly banks to the Deposit Insurance Fund (DIF) in 2012 year-to-date:
1 Tennessee Commerce Bank, Franklin, TN $416.8M
2 The First State Bank, Stockbridge, GA $216.2M
3 Inter Savings Bank FSB, Maple Grove, MN $117.5M
4 Fidelity Bank, Dearborn, MI $92.8M
5 First Guaranty Bank & Trust Company of Jacksonville, Jacksonville, FL $82.0M
6 Plantation Federal Bank, Pawleys Island, SC $76.0M
7 BankEast, Knoxville, TN $75.6M
8 Central Bank of Georgia, Ellaville, GA $67.5M
9 Premier Bank, Wilmette, IL $64.1M
0 Bank of the Eastern Shore, Cambridge, MD

Seeking Alpha