Tag Archives: Bank Failure

On behalf of the FDIC, First Financial Network, Inc. is selling $85 million in loans from the failed NOVA Bank based in Berwyn, Pennsylvania.

1st Regents Bank, of Andover, Minnesota, became the country's second FDIC-insured institution to collapse in 2013, the FDIC announced Friday.

Washington's Westside Community Bank has the dubious honor of being the first to fall in 2013. The FDIC announced that the Washington State Department of Financial Institutions shuttered Westside on Friday.

Three former executives of the Bank of Commonwealth based in Norfolk, Virginia were charged for understating millions in loan losses and hiding the state of the bank's portfolio, the Securities and Exchange Commission (SEC) announced in a statement. Edward J. Woodard (former CEO, president, and chairman of the board), Cynthia A. Sabol (former CFO), and Stephen G. Fields (former EVP) were charged for allegedly misrepresenting the bank's deteriorating loan portfolio to investors.

Fewer businesses in the mortgage industry went under in Q4 2012, according to data from Mortgage Daily. The number of mortgage businesses--banks, credit unions, and non-bank mortgage firms--that fell dark in Q4 of this year stood at 13, down from 17 in Q3 and halved from 26 during the same quarter in 2011, Mortgage Daily reported. In 2012 alone, 82 mortgage businesses had to shut their doors, a steep decrease from 137 in 2011 and the lowest number since 2006, when 31 businesses failed.

FDIC-insured banks continued to show improving health in the year's third quarter, the agency reported Tuesday. Commercial banks and savings institution insured by FDIC reported aggregate net income of $37.6 billion in Q3, up from a reported $35.2 billion in Q3 2011. Meanwhile, negative indicators continued to fall. The number of banks on FDIC's ""Problem List"" declined for the sixth straight quarter, dropping from 732 to 694. The third quarter also marked the first time in three years that there have been fewer than 700 banks on the list.

Marking the 50th bank closing nationwide this year, the two branches of Hometown Community Bank in Braselton, Georgia shut their doors Friday and reopened Saturday as branches of CertusBank, National Association of Easley, South Carolina.

The implementation of the Basel III capital rules may be postponed beyond the start of 2013, according to a joint statement released by the Office of the Comptroller of the Currency, the FDIC, and the Federal Reserve. The announcement follows a comment period during which many trade organizations and institutions expressed apprehension about the new requirements.

While admitting that creating mortgage lending regulations that prevent abuse without over-burdening community banks is challenging, Federal Reserve governor Elizabeth A. Duke suggested Friday that policymakers ""abandon efforts for a one-size-fits-all approach."" Duke first let community bankers know the federal regulatory agencies agreed to postpone the requirements that were set to go into effect at the start of next year. She also said in most cases, evidence supports community bankers' claims that their lending practices did not lead to the financial crises. For example, for community banks, their serious delinquency rate for subprime loans did not go much over 4 percent.

The FDIC added two more banks to this year's failed bank list Friday, bringing the total year-to-date to 49. The two shuttered banks were located in Illinois and Florida, each marking the eighth bank in their state to close this year.