Tag Archives: Bank Failure

The Office of the Comptroller of the Currency shut down First National Bank of Olathe in Kansas on Friday evening and appointed the FDIC as receiver. So far this year, 64 insured institutions have landed on the FDIC's failed bank list. First National Bank of Olathe is the first Kansas-based institution to make that list in 2011. Enterprise Bank & Trust of Clayton Missouri agreed to take over the failed lender.

This year's failed-bank tally rose to 63 over the weekend, as state and federal regulators seized control of two more community-based lenders -- Bank of Whitman in Colfax, Washington, and Bank of Shorewood in Illinois. Together, the two closings are expected to cost the FDIC $160 million. Though still elevated, the number of bank seizures has tapered off considerably from earlier in the crisis. At this time last year, the count of FDIC-insured institutional failures stood at 109 for the 2010 calendar year.

Federal and state regulators shut down three more community-based lenders over the weekend in Indiana, South Carolina, and Virginia. With this latest round of closings, the FDIC's failed-bank list has grown to 61 for the 2011 calendar year. Integra Bank, N.A. in Evansville, Indiana, was the largest of this weekend's seizures, with 52 branches, $1.9 billion in deposits, and assets totaling $2.2 billion. It was taken over by Old National Bank, also in Indiana.

State and federal regulators closed the doors on three lending institutions over the weekend -- LandMark Bank of Florida, Southshore Community Bank also in Florida, and Bank of Choice out of Colorado. This latest round of closings brings the number of lenders on the FDIC's failed-bank list to 58 for the year. Together, the three seizures are expected to cost the federal agency $256 million.

State and federal regulators shut down four community-based financial institutions over the weekend two in Georgia and one each in Florida and Arizona. These latest closings bring the total number of names on the FDIC's failed bank list to 55 for the 2011 calendar year.

The FDIC has filed suit against former IndyMAC Bancorp Inc. CEO Michael Perry for $600 million in losses caused by risky mortgage loans. The FDIC accuses Perry of purchasing $10 billion in risky residential loans.

Regulators closed three banks over the weekend – two in Colorado and one in Illinois. Colorado Capital Bank, Castle Rock, Colorado, and Signature Bank, Windsor, Colorado, were closed by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. First Chicago Bank & Trust, Chicago, Illinois, was closed by the Illinois Department of Financial and Professional Regulation, which also appointed the FDIC as receiver.

Reverse mortgage businesses accounted for a bigger share of industry casualties during the first half of 2011. Data released Tuesday shows that three lenders, which together made up 46 percent of the market for FHA's reverse mortgage program, called it quits earlier this year. The study noted that one factor impacting the dwindling sector is the possibility that borrowers will miss insurance or tax payments, which can trigger default on federally insured loans.

State and federal regulators shut down Mountain Heritage Bank in Clayton, Georgia, late Friday. It's the 14th FDIC-insured financial institution in the state to be closed this year. So far in 2011, 48 insured banks have been shuttered. At this time last year, the tally stood at 86. Mountain Heritage, which was founded in 2003, fell victim to the real estate downturn, with heavy losses on construction loans and mortgages for second homes.

State and federal regulators stepped in late Friday to shut down two lenders - First Commercial Bank of Tampa Bay in Florida and McIntosh State Bank in Jackson, Georgia. The closings bring the number of financial institutions on the FDIC's failed bank list to 47 for the 2011 calendar year and are expected to cost the federal agency $108.5 million.