Marco Community BankFlorida regulators shut down Marco Community Bank of Marco Island, Fla., the main subsidiary of Marco Community Bancorp ( MCBN), and appointed the Federal Deposit Insurance Corp. receiver. The FDIC sold the failed bank's $117 million in deposits for a 1.5% premium to Mutual of Omaha Bank, of Omaha, Neb., which also agreed to take on the failed institution's roughly $120 million in total assets, with the FDIC agreeing to share in losses on $104.8 million of the acquired assets. Marco Community Bank had been assigned an E- (Very Weak) financial strength rating by TheStreet.com Ratings back in September. Loan losses depleted the bank's capital, and it was considered undercapitalized since the end of the third quarter. TheStreet.com recently included it in its listing of undercapitalized banks in four key states. The failed bank's office was set to reopen Saturday as a branch of Mutual of Omaha Bank. The FDIC estimated the cost to its insurance fund would be $38.1 million.
La Coste National BankThe Office of the Comptroller of the Currency closed La Coste National Bank of La Coste, Texas. The FDIC was appointed receiver and sold the failed bank's $49 million in deposits for a 0.51% premium to Community National Bank of Hondo, Texas. Community National also acquired La Coste National Bank's $54 million in total assets. This was an unusual bank failure, since La Coste National Bank's Dec. 31 regulatory financial report revealed no signs of problems, and TheStreet.com Ratings had assigned the bank a C+ (Fair) financial strength rating. The bank was well capitalized as of Dec. 31, had very strong credit quality and reported profits for every quarter during 2009. The OCC said the bank was critically undercapitalized after experiencing "substantial dissipation of assets and earnings due to unsafe and unsound practices." There were no enforcement orders listed for the bank in the OCC's public database, and the regulator did return a phone call seeking comment Friday night.
George Washington Savings BankIllinois regulators shuttered George Washington Savings Bank of Orland Park, Ill. and appointed the FDIC receiver. The FDIC sold the failed bank's $397 million in deposits for a small premium to FirstMerit Bank, NA of Akron, Ohio, the main subsidiary of FirstMerit Corporation ( FMER). FirstMerit also took on the failed bank's $413 million in total assets, with the FDIC agreeing to share in losses on $324.2 million. George Washington Savings Bank had been assigned an E-minus financial strength rating by TheStreet.com Ratings in December and was also included in the recent list of undercapitalized banks in four states. The failed bank's four branches were scheduled to reopen Saturday as FirstMerit branches. The FDIC estimated the cost to its insurance fund would be $141.4 million.
La Jolla Bank, FSBThe Office of Thrift Supervision closed La Jolla Bank, FSB of La Jolla, Calif. The FDIC was appointed receiver and arranged for OneWest Bank, FSB of Pasadena, Calif. to take over the failed thrift's $2.8 billion in deposits for no premium, along with $3.6 billion in total assets, with the FDIC agreeing to share in losses on $3.31 billion. TheStreet.com Ratings had assigned La Jolla Bank an E-plus (Very Weak) financial strength rating in December. A huge provision for loan losses of $257 million during the fourth-quarter nearly wiped out the thrift's core capital, although La Jolla Bank was not included in TheStreet.com's recent list of undercapitalized banks in four states, because its Dec. 31 financial report wasn't yet publicly available.
Ongoing Bank Failure CoverageAll previous bank and thrift failures since the beginning of 2008 are detailed in TheStreet.com's interactive bank failure map: