It’s another hat trick for the FDIC today. Three banks were added to the FDIC Failed Bank List:
Republic Federal Bank, National Association, Miami, FL - Total deposits of approximately $352.7 million and an estimated hit to the Deposit Insurance Fund (DIF) of $122.6 million. This involves one of those loss-share agreements: The FDIC and 1st United Bank entered into a loss-share transaction on approximately $210.4 million of Republic Federal Bank, N.A.’s assets.
Valley Capital Bank, National Association, Mesa, AZ - Total deposits of approximately $41.3 million and an estimated hit to the DIF of $7.4 million. The FDIC and Enterprise Bank entered into a loss-share transaction on approximately $29.8 million of Valley Capital Bank’s assets.
SolutionsBank, Overland Park, KS - Total deposits of approximately $421.3 million and an estimated hit to the DIF of $122.1 million. The FDIC and Arvest Bank entered into a loss-share transaction on approximately $411.3 million of SolutionsBank’s assets. Still, serious kudos to whatever caffeine addicts are in charge of this operation. The bank’s branches will be open on Saturday.
Regional bank failures will continue as long as the commercial real estate market remains weak. There was no mortgage backed securities nightmare for most commercial development, so the banks are sitting on a lot of garbage loans in bubble areas. The pain will linger for a lot of medium sized banks.
Tonight brings the count of bank failures up to 133 for the year. The count will reset in a few weeks.
