The FDIC have updated their Failed Bank List. Here’s the summary of the impacts:
First BankAmericano, Elizabeth, NJ — Total deposits of approximately $157 million and an estimated hit to the FDIC fund of $15 million.
Peoples Community Bank, West Chester, OH — Total deposits of approximately $598.2 million and an estimated hit to the FDIC fund of $129.5 million.
Integrity Bank, Jupiter, FL — Total deposits of approximately $102 million and an estimated hit to the FDIC fund of $46 million.
First State Bank of Altus, Altus, OK — Total deposits of approximately $98.2 million and an estimated hit to the FDIC fund of $25.2 million.
Mutual Bank, Harvey, IL — Total deposits of approximately $1.6 billion and an estimated hit to the FDIC fund of $696 million.
Three of these look good. Integrity Bank is painful, but small. Mutual Bank is painful and large. Worse, the FDIC had to enter into a loss-share transaction with United Central Bank (the acquiring institution of Mutual Bank) for $1.3 billion of Mutual’s assets. If things go down the toilet, the loss estimates will likely prove optimistic. This isn’t necessarily a criticism of the FDIC. In each case, the FDIC does the best they can do at the time. Unfortunately, they sometimes take too long to close the bank. This can happen for a number of reasons. The fact that Corus bank still isn’t in the list is indicative that lining up a plan is a time-consuming task (link is to the many posts on CalculatedRisk about Corus).
Mutual Bank was the 69th bank to fail this year.
I wanted to finish this post before heading to dinner, but there’s still time left in the day for some west coast failures.
