This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Banks Fail in Colorado, North Carolina

Updated from 10:21 a.m. EDT

Regulators shut down two banks Friday, bringing the total number of bank and thrift failures during 2009 to 23. For the third time in less than a month, the FDIC apparently was unable to find a buyer for one of the failed institutions.

The Colorado State Bank Commissioner shut down New Frontier Bank of Greeley, Colo. and named the FDIC receiver. The FDIC created the Deposit Insurance National Bank of Greeley, which was to operate for about 30 days and allow New Frontier's retail savings and checking depositors to move their insured balances to other institutions. The rest of New Frontier's deposits were to be returned directly to depositors or, in some cases, to brokers.

Meanwhile, The North Carolina Commissioner of Banks shut down Cape Fear Bank of Wilmington, N.C. and appointed the Federal Deposit Insurance Corp. receiver. The FDIC then arranged for First Federal Savings and Loan Association of Charleston (held by First Financial Holdings (FFCH)) to acquire all the deposits of the failed institution and most of its assets. Cape Fear Bank's holding company was Cape Fear Bank Corp. (CAPE).

New Frontier Bank

New Frontier Bank had total assets of $2.0 billion and total deposits of roughly $1.5 billion. The FDIC apparently didn't find another institution willing to acquire New Frontier's deposits. Instead, it created a Deposit Insurance Bank to allow savings and checking depositors to move their insured funds to other institutions over the next 30 days. Deposit Insurance National Bank of Greeley will be administered by Bank of the West of San Francisco, and checks written against New Frontier accounts will continue to be paid until the Deposit Insurance Bank closes. Deposits transferred to the Deposit Insurance Bank totaled about $150 million. The remaining CD and IRA deposits will be returned by check directly to the depositors, or, for brokered CDs, to the brokers.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CAPE $79.59 0.00%
AAPL $126.37 0.00%
FB $83.20 0.00%
GOOG $552.03 0.00%
TSLA $190.57 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs