The FDIC is trying to stay on top of the declining situation with regional banks. Seven banks were added to the FDIC Failed Bank List tonight. Remember that the FDIC has three ways to resolve a failed bank. We get to see all three in action tonight:
RockBridge Commercial Bank, Atlanta, GA - Total deposits of $291.7 million and an estimated hit to the Deposit Insurance Fund (DIF) of $124.2 million. This bank is being shut down, so everyone gets a check for their insured deposits. The FDIC estimates that the bank had $2.1 million in uninsured funds. There are some wealthy, unhappy people in Atlanta.
Peoples First Community Bank, Panama City, FL - Total deposits of $1.7 billion and an estimated hit to the DIF of $556.7 million. This failure involved one of those loss-share agreements, with Hancock Bank on approximately $1.4 billion of Peoples First Community Bank’s assets.
Citizens State Bank, New Baltimore, MI - Total deposits of $157.1 million and an estimated hit to the DIF of $76.6 million. The FDIC created a new bank to aid the dissolution process. The FDIC estimates $803,000 in deposits exceeded the insurance limits. Three banks and all three methods to resolve problem banks.
New South Federal Savings Bank, Irondale, AL - Total deposits of $1.2 billion and an estimated hit to the DIF of $212.3 million. The FDIC and Beal Bank entered into a loss-share transaction on $1.2 billion of New South Federal Savings Bank’s assets.
Independent Bankers’ Bank, Springfield, IL - Total deposits of $511.5 million and an estimated hit to the DIF of $68.4 million. The FDIC created a new bank to help the resolution process. The bank had an estimated $269,000 in uninsured deposits.
Imperial Capital Bank, La Jolla, CA - Total deposits of $2.8 billion and an estimated hit to the DIF of $619.2 million. The FDIC and City National Bank entered into a loss-share transaction on $2.5 billion of Imperial Capital Bank’s assets.
First Federal Bank of California, a Federal Savings Bank, Santa Monica, CA - Total deposits of $4.5 billion and an estimated hit to the DIF of $146.3 million. The FDIC and OneWest Bank, FSB entered into a loss-share transaction on $5.3 billion of First Federal Bank of California’s assets.
The FDIC just approved their budget for next year. The number of personnel to help resolve failed banks is increasing substantially. 2010 will be worse than 2009 for bank failures. We’ve had 140 banks fail this year. The DIF is already empty (but backed by the Treasury, then Congress). This is a gentle reminder to stay under the FDIC insurance limits.
