FDIC bank closure teams are back from their holiday with a vengeance. Four banks were added to the FDIC Failed Bank List:
Home National Bank, Blackwell, OK - $560.7 million in total deposits and an estimated hit to the Deposit Insurance Fund (DIF) of $78.7 million. This deal required a loss-share agreement with Enterprise Bank & Trust on $260.8 million of Home National Bank’s assets. All 15 branches will be open tomorrow.
USA Bank, Port Chester, NY - $189.9 million in total deposits and an estimated hit to the DIF of $61.7 million. This deal required a loss-share agreement with New Century Bank on $159.1 million of USA Bank’s assets.
Ideal Federal Savings Bank, Baltimore, MD - $5.8 million in total deposits and an estimated hit to the DIF of $2.1 million. The FDIC approved a payout from this ironically named institution, so FDIC insurance limits apply. Payouts hurt.
Bay National Bank, Baltimore, MD - $276.1 million in total deposits and an estimated hit to the DIF of $17.4 million. This is a “clean” failure, with not loss-share agreement required. Both branches will reopen on Monday.
90 failures so far this year. We’ve also crossed the threshold into the second half of the year. The FDIC was reportedly gearing up for a greater failure rate starting … now.
