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Tag Archives: Bank Failure

Regulators Seize Control of California and Georgia Lenders

Two community-based lenders in California and two in Georgia were shut down over the weekend by banking regulators. These latest closings bring the number of names on the FDIC's failed bank list to 22 for the 2011 calendar year to date. The FDIC has said it expects the number of bank closures in 2011 to be less than the 157 that failed in 2010. But if the pace of 20-plus every two months continues, institutional failures will remain extremely elevated by historical standards.

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Regulators Close the Doors of Four Community Lenders

State and federal regulators have shut down four more community-based lenders. This latest round of closings targeted institutions in California, Florida, Michigan, and Wisconsin, and brings the number of bank failures so far in 2011 to 18. Peoples State Bank in Hamtramck, Michigan, was the largest of last weekend's failures and the only one which carried a loss-share agreement from the FDIC.

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Bad Commercial Real Estate Loans Push Four More Banks into Failure

State and federal regulators seized control of four more community-based lenders over the weekend - in Colorado, New Mexico, Oklahoma, and Wisconsin. That brings the failed-bank tally to 11 for the year. Commercial real estate (CRE) woes remain front and center for failed banks, according to the analysts at Foresight Analytics. In fact, for 10 of the 11 banks that have been shut down since the beginning of the year, the company says CRE loans contributed more than half of the banks' nonperforming loans.

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Regulators Seize United Western Bank and Three Others

Federal regulators took control of United Western Bank over the weekend after losses in 2009 and 2010 left the Denver-based bank ""undercapitalized and in an unsafe and unsound condition to transact business,"" according to the Office of Thrift Supervision. The institution's parent company called the seizure premature and indicated that the move will likely push it into bankruptcy. Three other smaller lenders were also shut down in Georgia, South Carolina, and North Carolina.

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Bank of the Ozarks Acquires Georgia Lender in FDIC-Assisted Deal

Oglethorpe Bank in Brunswick, Georgia, was shut down by state regulators over the weekend. The FDIC brokered a deal with Bank of the Ozarks in Little Rock, Arkansas to take over the operations of the failed lender. The Georgia bank marks the third bank closing of 2011, just two weeks into the new year. Bank of the Ozarks has been rapidly expanding its presence in the southeastern part of the United States. This is its fifth FDIC-assisted acquisition in the area within the past year.

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Florida and Arizona Banks Become First Failures of 2011

Just one week into the new year and regulators have moved to shut the doors on two community-based lenders -- First Commercial Bank of Florida in Orlando and Scottsdale, Arizona's Legacy Bank. Officials at the FDIC have said they expect bank failures to begin tapering off from last year, when a total of 157 financial institutions were shuttered and the lingering effects of bad real estate loans made at the height of the boom undermined many banks' balance sheets and left capital levels below regulatory requirements.

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Mortgage Casualties Decrease in 2010: Industry Report

Fewer mortgage-related firms closed their doors during 2010 than in 2009, according to newly released industry data. Including mortgage companies, retail and wholesale credit unions, and federally insured banks, the report tracked 201 mortgage-related business operations that either failed or were shut down during 2010. The casualty list was smaller than 2009's count, which stood at 230 mortgage-related fatalities - the most since 1998, when the report was first issued.

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Regulators Shut Down Six Community-Based Lenders

State and federal regulators closed six lending institutions over the weekend -- three in Georgia and one each in Arkansas, Florida, and Minnesota. It brings the number of bank failures for the year to 157, and follows news last week that the FDIC has lowered its operating budget for 2011 based on the expectation that institutional closings will slow in the year ahead. The largest of this weekend's closings was the Bank of Miami in Coral Gables, Florida, with $374.2 million in deposits and assets totaling $448.2 million.

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FDIC Lowers Budget as Bank Failures Slow

The number of bank closings has slowed in recent months, and that's given the FDIC reason to believe that the worst phase of institutional collapses is behind us. The FDIC's board of directors has approved a $3.96 billion operating budget for 2011, which the agency described as ""down slightly from the 2010 budget,"" when the board raised the amount by 55 percent to cope with an elevated number of bank failures. Officials are touting the fact that no increase is planned for the upcoming year as a sign the financial sector is at least stabilizing.

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Regulators Close Michigan and Pennsylvania Community Lenders

After a three-week lull, bank closings have returned. State and federal regulators shut down two community-based lenders on Friday, one in Michigan and one in Pennsylvania. There have been 151 bank failures so far this year. The FDIC said last month that its list of so-called problem banks has grown. There are now 860 insured financial institutions under greater scrutiny from the federal agency because capital levels have fallen dangerously low.

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