Dwelling House Savings and Loan
, which saw most of its capital get wiped out as a result of a large fraud related to electronic fund transfers, was seized by regulators late Friday and its assets and sole branch were sold to
PNC Financial Services
The FDIC was appointed receiver, and sold all of the thrift's deposits and its sole office to
PNC Bank NA
, a subsidiary of PNC Financial Services. Dwelling House's office was scheduled to reopen Monday as a branch of PNC.
Dwelling House had $13 million in total assets. PNC acquired $3 million in assets, with the FDIC retaining the rest for later disposition. The FDIC estimated the cost to its insurance fund would be $6.8 million.
With net losses of $2.4 million in the fourth quarter and $1.8 million in the first quarter, the institution was left with negative levels of capital and was unable to raise new capital in time to avoid being closed by regulators.
TheStreet.com had assigned Dwelling House Savings and Loan an E-minus (very weak) financial strength rating, which was a downgrade from E the previous quarter.
In addition to PNC, large bank holding companies that have acquired failed institutions during 2008 and 2009 include
Fifth Third Bancorp
The failure of Dwelling House brought the total number of failed banks and thrifts for 2009 to 73.
All previous bank failures since the beginning of 2008 are detailed on
continues to lead all states with 21 bank or thrift failures during 2008 and 2009, followed by
with 14 failures,
with 13, and then
with eight and
Nevada with four failures.
Free Financial Strength Ratings for Banks and Thrifts
While depositors suffered no losses from Dwelling House's failure, there have been five instances this year when a bank failed and the FDIC was unable to find another institution to acquire its deposits. Depositors with total balances exceeding FDIC insurance limits lost money in four of those failures.
Even if your personal deposits are under FDIC insurance limits, you or someone you know are probably associated with a business, organization or government entity (such as a school district) with large deposits of somebody else's money in a local bank.
While the FDIC's temporary increase of the basic individual deposit insurance limit to $250,000 has been extended through 2013, the agency has not yet decided whether or not to extend the waiver on deposit insurance for non-interest-bearing business checking accounts. This means that at the end of the year, businesses and municipalities might have to take a more active approach in managing their risks.
For depositors shopping for high rate CDs through brokers, it is also important to consider the health of a bank or thrift, since attractive CD rates that are locked in can be lost when an institution fails.
issues independent and very conservative financial strength ratings on each of the nation's 8,500 banks and savings and loans which are available at no charge on the
In addition, the Financial Strength Ratings for 4,000 life, health, annuity, and property/casualty insurers are available on the
Written by Philip van Doorn in Jupiter Fla.
Philip W. van Doorn joined TheStreet.com Ratings., Inc., in February 2007. He is the senior analyst responsible for assigning financial strength ratings to banks and savings and loan institutions. He also comments on industry and regulatory trends. Mr. van Doorn has fifteen years experience, having served as a loan operations officer at Riverside National Bank in Fort Pierce, Florida, and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a Bachelor of Science in business administration from Long Island University.