Rebel Traders – Analysis Without The Hype

Today the Federal deposit Insurance Company released the latest quarterly banking profile. There is much information contained within this latest report and I will highlight the important parts for you here:

The most important revelation is that the Deposit Insurance Fund (DIF), the money available to pay back customers at failed banks, has dropped to a record low.

The Deposit Insurance Fund (DIF) decreased by $12.6 billion during the fourth quarter to a negative $20.9 billion (unaudited) primarily because of $17.8 billion in additional provisions for bank failures. Also, unrealized losses on available-for-sale securities combined with operating expenses reduced the fund by $692 million. Accrued assessment income added $3.1 billion to the fund during the quarter, and interest earned, combined with termination fees on loss share guarantees and surcharges from the Temporary Liquidity Guarantee Program added $2.8 billion. For the year, the fund balance shrank by $38.1 billion, compared to a $35.1 billion decrease in 2008.

The DIF’s reserve ratio was negative 0.39 percent on December 31, 2009, down from negative 0.16 percent on September 30, 2009, and 0.36 percent a year ago. The December 31, 2009, reserve ratio is the lowest reserve ratio for a combined bank and thrift insurance fund on record.

In layman’s terms, the FDIC is in the hole by nearly $21 Billion, and it is very likely that they are tapping their $500 Billion credit agreement with the US.Treasury taxpayers.

The number of banking institutions that the FDIC has identified as ‘problem institutions’ has risen once again and now stands at 702 with assets of $403 Billion. If there is $403 Billion in assets recognized as being contained in problem banks, and the insurance fund is negative $21 Billion then where will the money come from to pay our insurance claims when these banks fail? Taxpayers, that’s where.

The FDIC also reported that loan losses rose for the 12th consecutive quarter.

Asset quality indicators worsened in the fourth quarter. Net charge-offs (NCOs) totaled $53.0 billion, an increase of $14.4 billion (37.2 percent) over the same period in 2008. The annualized net charge-off rate rose to 2.89 percent, up from 1.95 percent a year earlier and 2.72 percent in the third quarter of 2009. This is the highest quarterly NCO rate reported by the industry in the 26 years for which quarterly NCO data are available. […]

Noncurrent loans still growing

Noncurrent loans and leases continued to rise through the end of the year, with a few notable exceptions. The total amount of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) increased by $24.3 billion (6.6 percent) in the fourth quarter, to $391.3 billion, or 5.37 percent of all loans and leases at yearend. This is the highest level for the industry’s noncurrent rate in the 26 years that all insured institutions have reported noncurrent loan data. The increase in noncurrent loans in the quarter was largely driven by noncurrent residential mortgage loans, which rose by $23.2 billion (14.9 percent).[…]

All in all the FDIC looks to be in sad shape. Expect to see FDIC Chairwoman Shelia Bair to be before Congress again this year trying to explain why it is that the insurance fund is broke and what she is going to do about it.

Another Friday and another day of the FDIC rapid response team going into action. Today’s targets of acquisition were Barnes Banking Company of Kaysville, UT, St. Stephen State Bank,St. of Stephen,MN, and Town Community Bank & Trust of Antioch,IL:

FOR IMMEDIATE RELEASE
January 15, 2010

Barnes Banking Company, Kaysville, Utah, was closed today by the Utah Department of Financial Institutions, which appointed Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of Kaysville (DINB), which will remain open until February 12, 2010 to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the receiver immediately transferred to the DINB all insured deposits of Barnes Banking Company, except for brokered deposits, certificates of deposits (CDs) and individual retirement accounts (IRAs). The receiver also transferred to the DINB all secured deposits by public entities.

The FDIC will mail checks directly to customers with CDs and IRAs. For the brokered deposit customers, the FDIC will pay the brokers directly for the amount of their insured funds. Customers with brokered deposits should contact their brokers directly for information concerning their money.

The main office and all branches of Barnes Banking Company will open from 9:00 a.m. to 1:00 p.m., on Saturday. The DINB will maintain Barnes Banking Company’s normal business hours thereafter. Zions First National Bank, Salt Lake City, Utah, will provide operational management of the DINB. Banking activities, such as direct deposit and writing checks, ATM and debit cards, can continue normally for former customers of Barnes Banking Company until February 12, 2010. Barnes Banking Company official checks will continue to clear and will be issued to customers closing accounts.

All insured depositors of Barnes Banking Company are encouraged to transfer their insured funds to other banks during this transitional period. They may do so by asking their new bank to electronically transfer their deposits from the DINB or by writing checks for the amount in their accounts. For depositors who have not closed or transferred their accounts on or before February 12, 2010, the FDIC will mail checks to the address of record for the amount of the insured funds.

Under the FDI Act, the FDIC may create a deposit insurance national bank to ensure that depositors have continued access to their insured funds where no other bank has agreed to assume the insured deposits. This arrangement allows for uninterrupted direct deposits and automated payments from customers’ accounts and allows them time to find another institution with which to do business.

As of September 30, 2009, Barnes Banking Company had $827.8 million in total assets and $786.5 million in total deposits. At the time of closing, there were approximately $100,000 in deposit funds that potentially exceeded the insurance limits. Uninsured deposits were not transferred to the DINB. This estimate is likely to change once the FDIC obtains additional information from these customers.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-528-4893 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9 p.m., Mountain Standard Time (MST); on Saturday from 9 a.m. to 6 p.m., MST; on Sunday from noon to 6 p.m., MST; and thereafter from 8 a.m. to 8 p.m., MST. Customers who would like more information on today’s transaction should visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/barnes.html.

Beginning Monday, depositors of Barnes Banking Company with more than $250,000 at the bank may visit the FDIC’s Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.

The FDIC as receiver will retain all the assets from Barnes Banking Company for later disposition. Loan customers should continue to make their payments as usual.

The cost to the FDIC’s Deposit Insurance Fund is estimated to be $271.3 million. Barnes Banking Company is the fourth bank to fail this year and the first in Utah. The last FDIC-insured institution closed in the state was America West Bank, Layton, on May 1, 2009.

 

FOR IMMEDIATE RELEASE
January 15, 2010

St. Stephen State Bank, St. Stephen, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank of St. Joseph, St. Joseph, Minnesota, to assume all of the deposits of St. Stephen State Bank.

The two branches of St. Stephen State Bank will reopen during normal business hours as branches of First State Bank of St. Joseph. Depositors of St. Stephen State Bank will automatically become depositors of First State Bank of St. Joseph. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from First State Bank of St. Joseph that it has completed systems changes to allow other First State Bank of St. Joseph branches to process their accounts as well.

This evening and over the weekend, depositors of St. Stephen State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2009, St. Stephen State Bank had approximately $24.7 million in total assets and $23.4 million in total deposits. First State Bank of St. Joseph did not pay the FDIC a premium to assume all of the deposits of St. Stephen State Bank. In addition to assuming all of the deposits of the St. Stephen State Bank, First State Bank of St. Joseph agreed to purchase essentially all of the failed bank’s assets.

The FDIC and First State Bank of St. Joseph entered into a loss-share transaction on $20.4 million of St. Stephen State Bank’s assets. First State Bank of St. Joseph will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-591-2845. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; and thereafter from 8:00 a.m. to 8:00 p.m., CST. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/ststephen.html .

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.2 million. First State Bank of St. Joseph’s acquisition of all the deposits was the "least costly" resolution for the FDIC’s DIF compared to all alternatives. St. Stephen State Bank is the third FDIC-insured institution to fail in the nation this year, and the first in Minnesota. The last FDIC-insured institution closed in the state was Prosperan Bank, Oakdale, on November 6, 2009.

FOR IMMEDIATE RELEASE
January 15, 2010

Town Community Bank and Trust, Antioch, Illinois, was closed today by the Illinois Department of Financial Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First American Bank, Elk Grove Village, Illinois, to assume all of the deposits of Town Community Bank and Trust.

The sole branch of Town Community Bank and Trust will reopen on Saturday as a branch of First American Bank. Depositors of Town Community Bank and Trust will automatically become depositors of First American Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use the former Town Community Bank and Trust branch until they receive notice from First American Bank that it has completed systems changes to allow other First American Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Town Community Bank and Trust can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2009, Town Community Bank and Trust had approximately $69.6 million in total assets and $67.4 million in total deposits. First American Bank did not pay the FDIC a premium to assume all of the deposits of Town Community Bank and Trust. In addition to assuming all of the deposits, First American Bank agreed to purchase approximately $67.6 million of Town Community Bank and Trust’s assets. The FDIC retained the remaining assets for later disposition.

The FDIC and First American Bank entered into a loss-share transaction on $56.2 million of Town Community Bank and Trust’s assets. First American Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-877-894-4710. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; and thereafter from 8:00 a.m. to 8:00 p.m., CST. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/towncommunity.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.8 million. First American Bank’s acquisition of all the deposits was the "least costly" resolution for the FDIC’s DIF compared to all alternatives. Town Community Bank and Trust is the second FDIC-insured institution to fail in the nation this year, and the first in Illinois. The last FDIC-insured institution closed in the state was Independent Bankers’ Bank, Springfield, on December 18, 2009.

The cash reserves needed for the FDIC to keep paying depositors at failed banks has all been used up. Don’t panic (yet anyways), the FDIC has an open credit line to the Treasury Department (uh, that means us tax payers) that will keep the FDIC floating in cash to keep paying out money to Grandma and Grandpa at the failed banks.

You see, the FDIC is supposed to be self maintaining, it charges banks a fee to have their deposits insured. Think of it as the banks paying an insurance premium. That money goes into the FDIC kitty and is used to pay depositors when a bank fails. That is all well and good except when the financial system blows up like it has over the past 2 years.

As of today’s quarterly report issued by the FDIC they are now broke, and I mean that in the literal sense.

FDIC deposit insurance fund now -$8.2B v $10.4B last quarter

Yep, they are broke, no money left in the cash drawer. So what now? As long as the FDIC has an open credit line with the Treasury then any bank that fails it will be the taxpayers who reimburse Grandma and Grandpa.

Think of it this way: you have a checking account at (let’s pick a name out of the air) ShittyBank and they get closed by the FDIC. Your very own money will be reimbursed to you via the FDIC insurance fund, but you will actually be paying yourself back in part because taxpayers will be on the hook to keep the FDIC floating in funds. So in the end you still lose some money.

The FDIC has recently asked member banks to pre-pay insurance premiums for the next 3 years in an attempt to fund the reserve pool as quickly as possible. But many smaller banks are objecting to this as it will further cut into their balance sheets. Besides, will prepayment of 3 years of insurance premiums be enough to cover the increase in bank failures that still lie ahead? I think not. In which case it will eventually end up in the tax payers lap.

Not only has the FDIC announced that their cash drawer is empty, but the number of banks on their hit list has grown yet again. That number now stands at 552 compared to 416 just in the previous quarter.

Recall that just a couple months ago the FDIC opened a satellite office in Florida with a staff of roughly 500 to deal with the bank issues (aka future bank failure) in the Southeast region. Expect more bank failures from Florida and surrounding states in the future.

Tomorrow’s Wall Street Journal paper will be running the story that House Financial Services Committee Chairman Barney

Deaf, Dumb, and Blind

Frank has sent a letter to top banking regulators to “go easy on small banks”.

You did read that correctly. Barney Frank essentially says that enforcing bank regulations is hurting the small banks so he wants the bank police to go deaf, dumb, and blind.

[...] House Financial Services Committee Chairman Barney Frank (D., Mass.) sent a letter to the country’s top bank regulators, including Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair, urging them to “show some temperance in their regulation of traditional banks.” One common complaint from lawmakers is that regulators’ tough examinations are making banks reluctant to lend.

“A self-fulfilling prophecy of community bank failures, shrinking credit availability and a slower economic recovery can all result from a regulatory overreaction to the current crisis,” said the letter, which also was signed by Rep. Walt Minnick (D., Idaho).

Federal bank regulators have hit hundreds of banks with formal and informal sanctions this year, ordering them to boost capital requirements — reserves set aside to cover possible losses — and sometimes to shake up management. Regulators have closed 115 banks since January, and bankers across the country are complaining examiners are criticizing the health of even the strongest banks.[...]

[...] Mr. Frank’s letter complains examiners are enforcing “unofficial” capital requirements that are higher than the normal standard. Secondly, it says examiners are focusing bank reviews mainly on asset quality and not other measures of a bank’s health. Third, it says “banks are being forced” to write down the value of assets to their market value, which can lead to “artificially low prices.”

A day after Mr. Frank’s letter, Timothy W. Long, chief national bank examiner at the Office of the Comptroller of the Currency, sent a memo to the agency’s examiners about new rules for commercial real-estate lending. In the memo he addressed the criticism examiners are facing.

“I have refuted and will continue to refute accusations that examiners are being ‘too tough’ or are creating the so-called credit crunch by their actions,” he wrote, according to a copy of the memo reviewed by The Wall Street Journal. [...]

By telling the bank regulators to lighten up on the smaller banks will simply allow the creation of an army of zombie banks. Over leveraging and bad loans contributed greatly to the economic collapse. Now when enforcing banking regulations are paramount to restoring trust in ‘the system’,  Barney Frank just wants the regulators to go soft on them.

This is analogous to telling the police not to look at the burglar going into the banks. Except in this situation the burglars are running the banks.

What is Barney Frank so upset about anyway? The following list is directly from the FDIC press release files. Clicking on any of the contained links will bring up the full report issued by the FDIC against the said named bank. A lot of the findings are in the category of ‘unsafe banking practices’ and these reports are a warning to the bank to get its act together.

By the way, just about every bank failure so far has appeared on this list ‘before’ they failed.

FDIC Cease and Desist Orders – Updated November 4, 2009

FDIC Cease and Desist Orders for 2009 – updated November 4 2009

This last bank closes the round of five failed banks this week. It will be however noted that these are mostly “small” or regional banks and that they have been bought up by competitors, which gives a real illustration of the economic function of a recession: weeding out the unnecessary or unprofitable companies or individuals. In general, it is precisely the reason for which recessions are often followed by longer periods of economic growth.

While the number of 100 failed banks may seem a bit striking, it should not be forgotten that in the end, banks are businesses like any other. They also fail. Hence, the use of a guarantee mechanism like the FDIC. The issue could be when (and more importantly, “if”) the failed banks’ losses go beyond the financing capabilities of the FDIC.

FOR IMMEDIATE RELEASE
October 23, 2009

Riverview Community Bank, Otsego, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Riverview Community Bank.

The two branches of Riverview Community Bank will reopen on Saturday as branches of Central Bank. Depositors of Riverview Community Bank will automatically become depositors of Central Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Central Bank can fully integrate the deposit records of Riverview Community Bank.

This evening and over the weekend, depositors of Riverview Community Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of August 31, 2009, Riverview Community Bank had total assets of $108 million and total deposits of approximately $80 million. Central Bank did not pay the FDIC a premium to assume all of the deposits of Riverview Community Bank. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets.

The FDIC and Central Bank entered into a loss-share transaction on approximately $75 million of Riverview Community Bank’s assets. Central Bank will share in the losses on the assets covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-355-0814. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/riverview-mn.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20 million. Central Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Riverview Community Bank is the 105th FDIC-insured institution to fail in the Nation this year, and the fifth in Minnesota. The last FDIC-insured institution closed in the state was Jennings State Bank, Spring Grove, on October 2, 2009.

FOR IMMEDIATE RELEASE
October 23, 2009

Bank of Elmwood, Racine, Wisconsin, was closed today by the Wisconsin Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Tri City National Bank, Oak Creek, Wisconsin, to assume all of the deposits of Bank of Elmwood.

The five branches of Bank of Elmwood will reopen on Saturday as branches of Tri City National Bank. Depositors of Bank of Elmwood will automatically become depositors of Tri City National Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until Tri City National Bank can fully integrate the deposit records of Bank of Elmwood.

This evening and over the weekend, depositors of Bank of Elmwood can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2009, Bank of Elmwood had total assets of $327.4 million and total deposits of approximately $273.2 million. Tri City National Bank did not pay the FDIC a premium for the deposits of Bank of Elmwood. In addition to assuming all of the deposits of the failed bank, Tri City National Bank agreed to purchase essentially all of the assets.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-234-9027. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/elmwood.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $101.1 million. Tri City National Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Bank of Elmwood is the 104th FDIC-insured institution to fail in the Nation this year, and the first in Wisconsin. The last FDIC-insured institution closed in the state was The First National Bank of Blanchardville, Blanchardville, on May 9, 2003.

FOR IMMEDIATE RELEASE
October 23, 2009

Flagship National Bank, Bradenton, Florida, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Federal Bank of Florida, Lake City, Florida, to assume all of the deposits of Flagship National Bank.

The four branches of Flagship National Bank will reopen on Monday as branches of First Federal Bank of Florida. Depositors of Flagship National Bank will automatically become depositors of First Federal Bank of Florida. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from First Federal Bank of Florida that it has completed systems changes to allow other First Federal Bank of Florida branches to process their accounts as well.

This evening and over the weekend, depositors of Flagship National Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of August 31, 2009, Flagship National Bank had total assets of $190 million and total deposits of approximately $175 million. First Federal Bank of Florida did not pay the FDIC a premium for the deposits of Flagship National Bank. In addition to assuming all of the deposits of the failed bank, First Federal Bank of Florida agreed to purchase essentially all of the assets.

The FDIC and First Federal Bank of Florida entered into a loss-share transaction on approximately $130 million of Flagship National Bank’s assets. First Federal Bank of Florida will share in the losses on the asset pools covered under the loss-share agreement. The loss-share arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-355-0650. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/flagship.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $59 million. First Federal Bank of Florida’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Flagship National Bank is the 103rd FDIC-insured institution to fail in the Nation this year, and the ninth in Florida. The last FDIC-insured institution closed in the state was Hillcrest Bank Florida, Naples, which also closed today.

FOR IMMEDIATE RELEASE
October 23, 2009

Hillcrest Bank Florida, Naples, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Hillcrest Bank Florida.

The six branches of Hillcrest Bank Florida will reopen on Monday as branches of Stonegate Bank. Depositors of Hillcrest Bank Florida will automatically become depositors of Stonegate Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Stonegate Bank can fully integrate the deposit records of Hillcrest Bank Florida.

This evening and over the weekend, depositors of Hillcrest Bank Florida can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of October 1, 2009 , Hillcrest Bank Florida had total assets of $83 million and total deposits of approximately $84 million. Stonegate Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of Hillcrest Bank Florida. In addition to assuming all of the deposits of the failed bank, Stonegate Bank agreed to purchase $28 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-517-1846. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/hillcrest-fl.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45 million. Stonegate Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Hillcrest Bank Florida is the 102nd FDIC-insured institution to fail in the Nation this year, and the eighth in Florida. The last FDIC-insured institution closed in the state was Partners Bank, Naples, earlier this evening.

FOR IMMEDIATE RELEASE
October 23, 2009

American United Bank, Lawrenceville, Georgia, was closed today by the Georgia Department of Banking & Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Ameris Bank, Moultrie, Georgia, to assume all of the deposits of American United Bank.

The sole branch of American United Bank will reopen on Monday as a branch of Ameris Bank. Depositors of American United Bank will automatically become depositors of Ameris Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Ameris Bank that it has completed systems changes to allow other Ameris Bank branches to process their accounts as well.

This evening and over the weekend, depositors of American United Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of August 11, 2009, American United Bank had total assets of $111 million and total deposits of approximately $101 million. Ameris Bank will pay the FDIC a premium of 1.02 percent to assume all of the deposits of American United Bank. In addition to assuming all of the deposits of the failed bank, Ameris Bank agreed to purchase essentially all of the assets.

The FDIC and Ameris Bank entered into a loss-share transaction on approximately $92 million of American United Bank’s assets. Ameris Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-913-3058. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/americanunited.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $44 million. Ameris Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. American United Bank is the 101st FDIC-insured institution to fail in the Nation this year, and the twentieth in Georgia. The last FDIC-insured institution closed in the state was Georgian Bank, Atlanta, on September 25, 2009.

It was merely a question of time, but then a tiny bank of Florida got the unenviable title of being the 100th bank to fail in 2009. Four other banks also went under Friday.

FOR IMMEDIATE RELEASE
October 23, 2009

Partners Bank, Naples, Florida, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Partners Bank.

The two branches of Partners Bank will reopen on Monday as branches of Stonegate Bank. Depositors of Partners Bank will automatically become depositors of Stonegate Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Stonegate Bank that it has completed systems changes to allow other Stonegate Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Partners Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2009, Partners Bank had total assets of $65.5 million and total deposits of approximately $64.9 million. Stonegate Bank did not pay the FDIC a premium for the deposits of Partners Bank. In addition to assuming all of the deposits of the failed bank, Stonegate Bank agreed to purchase essentially all of the assets.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-357-7599. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/partners-fl.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $28.6 million. Stonegate Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Partners Bank is the 100th FDIC-insured institution to fail in the Nation this year, and the seventh in Florida. The last FDIC-insured institution closed in the state was Community National Bank of Sarasota County, Venice, on August 7, 2009.

An interesting number this time… 99 banks to fail this year in the US. After a quiet couple of weeks with no bank failures, here we go again. An article suggests even that 100 could only be 10 % of the number of total bank failures through to 2011, thus topping Meredith Whitney’s prediction of 300 bank failures by year’s end.

FOR IMMEDIATE RELEASE
October 16, 2009

San Joaquin Bank, Bakersfield, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of the deposits of San Joaquin Bank.

The five branches of San Joaquin Bank will reopen on Monday as branches of Citizens Business Bank. Depositors of San Joaquin Bank will automatically become depositors of Citizens Business Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Citizens Business Bank that it has completed systems changes to allow other Citizens Business Bank branches to process their accounts as well.

This evening and over the weekend, depositors of San Joaquin Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 29, 2009, San Joaquin Bank had total assets of $775 million and total deposits of approximately $631 million. Citizens Business Bank did not pay the FDIC a premium for the deposits of San Joaquin Bank. In addition to assuming all of the deposits of the failed bank, Citizens Business Bank agreed to purchase essentially all of the assets.

The FDIC and Citizens Business Bank entered into a loss-share transaction on approximately $683 million of San Joaquin Bank’s assets. Citizens Business Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-423-6395. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/sanjoaquin.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $103 million. Citizens Business Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. San Joaquin Bank is the 99th FDIC-insured institution to fail in the nation this year, and the tenth in California. The last FDIC-insured institution closed in the state was Affinity Bank, Ventura, on August 28, 2009.

Are we going now to see a spectacular drop in the number of bank failures on Fridays? For now, this Friday, only one bank has failed so far. Tonight, it is a Michiganian bank’s turn. Cost to the FDIC: 275 million $ cost

FOR IMMEDIATE RELEASE
October 2, 2009

Warren Bank, Warren, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Huntington National Bank, Columbus, Ohio, to assume all of the deposits of Warren Bank.

The six branches of Warren Bank will reopen on Saturday as branches of The Huntington National Bank. Depositors of Warren Bank will automatically become depositors of The Huntington National Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from The Huntington National Bank that it has completed systems changes to allow other Huntington branches to process their accounts as well.

This evening and over the weekend, depositors of Warren Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of July 31, 2009, Warren Bank had total assets of $538 million and total deposits of approximately $501 million. The Huntington National Bank will pay the FDIC a premium of 0.27 percent to assume all of the deposits of Warren Bank. In addition to assuming all of the deposits of the failed bank, The Huntington National Bank will purchase approximately $83 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-877-894-4713. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank.individual/failed/warren-mi.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $275 million. The Huntington National Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Warren Bank is the 96th FDIC-insured institution to fail in the nation this year, and the second in Michigan. The last FDIC-insured institution closed in the state was Michigan Heritage Bank, Farmington Hills, on April 24, 2009.