Tag Archives: Bank Failure

Atlantic Bank and Trust in Charleston, South Carolina, was closed Friday by the Office of Thrift Supervision (OTS), bringing the count of FDIC-insured bank failures to 45 for the year. The FDIC brokered a deal with First Citizens Bank and Trust Company to assume the failed lender's deposits and purchase all of its assets.

Washington state regulators stepped in to shut down First Heritage Bank in Snohomish late Friday. It was the only closing of an FDIC-insured institution last week but marks the 44th bank failure of the year, and the second in Washington. The FDIC brokered a deal with Tacoma's Columbia State Bank to take over the failed institution's operations.

Data released by the FDIC Tuesday show that lenders' are seeing considerable improvement in the quality of loans and becoming more confident that fewer borrowers will default. First-quarter loan loss provisions totaled $20.7 billion, less than half the $51.6 billion set aside to cover bad loans a year ago, and loans and leases 90 days or more past due or in nonaccrual status fell for a fourth consecutive quarter. At the same time, though, the number of banks on the FDIC's so-called ""problem list"" is at its highest level since 1993.

State and federal regulators stepped in to shut down two community based lenders in Georgia and one in Washington state over the weekend. They bring the number of FDIC-insured bank failures to 43 for the year. CertusBank, N.A. of Easley, South Carolina, picked up both the failed Georgia banks, Atlantic Southern Bank and First Georgia Banking Company, while Tacoma's Columbia State Bank acquired the failed Summit Bank, based in Burlington, Washington.

Federal regulators stepped in this weekend to shut down Coastal Bank in Cocoa Beach, Florida, making it the 40th FDIC-insured institution to fail so far this year. Miami's Premier American Bank, N.A., which is a wholly-owned subsidiary of Bond Street Holdings, Inc. entered into an agreement with the FDIC to purchase essentially all of the assets, and assume all of the deposits and certain other liabilities, of Coastal Bank. According to Premier American, this transaction makes it the sixth largest independent bank in Florida.

State and federal banking regulators shut down five institutions over the weekend - two in Georgia, two in Florida, and one in Michigan. This latest round of closings brings the number of bank failures to 34 for the 2011 calendar year. The largest of the closings was the Park Avenue Bank in Valdosta, Georgia, with $953.3 million in assets.

With no lender closings this weekend, the 2011 failed-bank tally holds at 34. By comparison, at this time in 2010, the year's failures stood at 57. Earlier this month, the FDIC updated its loss projections. The cost of FDIC-insured institution failures for the five-year period from 2011 through 2015 is expected to be $21 billion, compared to losses of $24 billion for banks that failed in 2010 alone. Market analysis conducted by Trepp LLC indicates that lenders are now taking the biggest hit from souring commercial real estate loans.

State and federal regulators closed the doors of six community-based lenders on Friday - two in Alabama, two in Georgia, and one each in Minnesota and Mississippi. This latest round of closings brings the total number of FDIC-insured bank failures to 34 for the year, and represents the most shut-downs in a single day since mid-December. Birmingham's Superior Bank was the largest of the closings and marks the first multi-billion dollar bank failure of 2011.

After a two-week lull in which no banking institution was shuttered by regulators, the FDIC stepped in this weekend to seize Western Springs National Bank and Trust in Illinois and Nevada Commerce Bank headquartered in Las Vegas. The two closings bring the total number on the FDIC's failed bank list for the 2011 calendar year to 28. Bank failures have slowed recently. During the first quarter of this year, 27 insured banks went under. It's the lowest quarterly tally since the second quarter of 2009 when bad real estate loans were forcing near-record numbers to close their doors weekly.

After two weeks of no bank failures, regulators stepped in to shut down one institution Friday evening - the Bank of Commerce in Wood Dale, Illinois. The closing brings the total number of bank failures during the first quarter of 2011 to 26. Wintrust Financial Corporation, headquartered in Lake Forest, Illinois, acquired the shuttered community bank in an FDIC-assisted transaction, making it part of the financial holding company's Advantage National Bank Group.