Five Banks Fail in Friday Night Massacre
Bank of the Eastern Shore
State regulators in Maryland also shut down Bank of the Eastern Shore, of Cambridge, which had $166.7 million in assets and $154.5 million in deposits as of Dec. 31.
The FDIC as receiver couldn't find a buyer for the failed institution, and therefore created Deposit Insurance National Bank of Eastern Shore, which would "remain open until May 25, 2012 to allow depositors access to their insured deposits and time to open accounts at other insured institutions."
The FDIC said that retail customers of the failed bank with certificates of deposit or IRA accounts would have checks mailed to them directly, while customers who had opened accounts through brokers were advised to contact their brokers for more information, since the brokers would be paid directly by the FDIC.Customers with balances above the basic individual account deposit insurance limit of $250,000 were advised to call the FDIC at 1-800-591-2817, "to set up an appointment to discuss their deposits." According to Bank of the Eastern Shore's Dec. 31 regulatory call report, the institution had $12.9 million in time deposits with balances of more than $250,000, however, since joint accounts can have coverage of more than $250,000 and since a customer could have multiple account registrations in the names of trusts or businesses, the total amount of uninsured deposits was likely to be much smaller. The FDIC estimated the cost of Bank of the Eastern Shore's failure to the Deposit Insurance Fund would be $41.8 million.
Palm Desert National BankThe OCC closed Palm Desert National Bank of Costa Mesa, Calif., which had $125.8 million in assets and $122.8 million in deposits as of Dec. 31. As receiver, the FDIC sold the failed bank to Pacific Premier Bank, also of Costa Mesa, which is the main subsidiary of Pacific Premier Bancorp (PPBI). The FDIC estimated that the failure of Palm Desert National Bank would cost the deposit insurance fund $20.1 million. The failed bank's office was scheduled to reopen Monday, as a Pacific Premier branch.
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