This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Two Banks Fail; 2011 Tally at 92

Stocks in this article: WFSL

Updated with additional information from a subsequent announcement from the FDIC, regarding brokered deposits at Western National Bank.

WASHINGTON ( TheStreet) -- Two banks failed Friday evening, bringing this year's total number of bank failures to 92.

Both failed banks were previously included in TheStreet's third-quarter Bank Watch List of undercapitalized institutions, based on regulatory data provided by SNL Financial.

Premier Community Bank of the Emerald Coast

The Florida Office of Financial Regulation took over Premier Community Bank of the Emerald Coast, which had $126.0 million in total assets when it failed, and was actually negatively capitalized as of Sept. 30, with a Tier 1 leverage ratio of -0.90%, after losing $4.3 million during the first three quarters of 2011, mainly from construction loan losses.

The Federal Deposit Insurance Corp. was appointed receiver, and sold the failed institution to Summit Bank, NA of Panama City, Fla. The FDIC agreed to cover 80% of $98.0 million of the failed bank's assets that were acquired by Summit Bank, and estimated the cost of Premier Community Bank of the Emerald Coast's failure to the deposit insurance fund would be $31.2 million.

The failed banks two offices were set to reopen as branches of Premier Community Bank, a division of Summit Bank, NA.

Western National Bank

The Office of the Comptroller of the Currency shut down Western National Bank of Phoenix, which had $162.9 million in total assets. The FDIC was appointed receiver, and sold the failed bank to Washington Federal, of Seattle.

The FDIC announced later that Washington Federal had assumed all of the failed institution's deposits, "excluding certain brokered deposits." Customers with brokered deposits in a bank that fails, are generally advised to contact their brokers, who are usually directly paid by the FDIC.

The failed bank's three branches were scheduled to reopen Monday, as Washington Federal branches.

The FDIC estimated the cost of Western National Bank's failure to the deposit insurance fund would be $37.6 million.

The acquiring institution is the main subsidiary of Washington Federal, Inc. (WFSL).

Thorough Bank Failure Coverage

Georgia leads all states with 23 bank failures this year, followed by Florida, with 13 failures, and Illinois, with nine bank closures.

All previous bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2011 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

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