Two Banks Fail; 2011 Tally at 92
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.
Premier Community Bank of the Emerald CoastThe 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 BankThe 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 CoverageGeorgia 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:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV