
Three Banks Fail, 2010 Tally Hits 30
WASHINGTON (
) -- Regulators seized three banks Friday, bringing this year's total number of U.S. bank and thrift failures to 30.
TheStreet.com Ratings
had previously assigned E-minus (Very Weak) financial strength ratings to all three banks, and all were included in
TheStreet.com's
list of
.
Park Avenue Bank
The New York State Banking Department closed
Park Avenue Bank
, which was headquartered in Manhattan and had $520 million in total assets. The Federal Deposit Insurance Corp. was appointed receiver and sold the failed bank's deposits for a small premium to Valley National Bank of Wayne, N.J., the main subsidiary of
Valley National Bancorp
(VLY) - Get Report
.
Valley National also acquired the failed bank's assets, with the FDIC agreeing to share in losses on $380 million of those assets. Park Avenue Bank's offices were set to reopen during normal business hours on Saturday. The FDIC estimated that the cost to its insurance fund would be $50.7 million.
This was Valley's second acquisition of a failed New York City institution in two days. It took over the failed
LibertyPointe Bank
late Thursday.
Valley National Bancorp granted the FDIC an "equity appreciation instrument," under which the holding company would make a cash payment to the FDIC based in part on the amount by which the weighted average price of Valley's stock exceeds $14.372 for the five trading days before the FDIC exercises the instrument. The agency can exercise the instrument from March 18 through April 10.
> > Bull or Bear? Vote in Our Poll
A similar arrangement netted the agency a
of $23 million after
New York Community Bancorp
( NYB) acquired the deposits and most of the assets of
in December, although the payment was dwarfed by the $84.2 million "bargain purchase gain" reported by New York Community for the fourth quarter. New York Community's shares have returned 35% since the AmTrust acquisition.
Old Southern Bank
Florida regulators shut down
Old Southern Bank
of Orlando and appointed the FDIC receiver. The FDIC sold the failed bank's $320 million in deposits for a 1% premium to
Centennial Bank
of Conway, Ark. Centennial is held by
Home Bancshares
(HOMB) - Get Report
.
Centennial Bank also acquired Old Southern's total assets of $316 million, with the FDIC agreeing to share in losses on $283 million of the acquired assets. The agency estimated that the cost to its insurance fund would be $94.6 million. Old Southern's branches were scheduled to reopen Monday as branches of Centennial Bank.
Statewide Bank
The Louisiana Office of Financial Institutions closed
Statewide Bank
of Covington, La. As receiver, the FDIC arranged for
Home Bank
of Lafayette, La. to assume the failed bank's $209 million in deposits and $243 million in total assets, with no premium charged for the deposits.
Home Bank is the main subsidiary of
Home Bancorp
(HBCP) - Get Report
.
The FDIC agreed to share in losses on $164 million of the acquired assets and estimated that the cost to its insurance fund would be $38.1 million.
Statewide Bank's offices were scheduled to reopen Saturday as Home Bank branches.
Ongoing Bank Failure Coverage
All previous bank and thrift failures since the beginning of 2008 are detailed in
TheStreet.com's
interactive bank failure map:
The bank failure map is color-coded, with states having the greatest number of failures highlighted in red, and states with no failures in gray. By hovering your mouse over a state you can see the combined 2008-2010 totals for each state. Then by clicking on the state, you can open a detailed map that pinpoints the locations of the failures and provides additional information on each failure.
Free Financial Strength Ratings
TheStreet.com Ratings
issues independent and very conservative financial strength ratings on each of the nation's 8,500 banks and savings and loans. They are available at no charge 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.









