Four banks and a credit union failed today. First, the banks, from the FDIC failed bank list:
First Bank of Idaho, Ketchum, ID — Total deposits of $374.0 million and an estimated cost to the FDIC fund of $191.2 million.
First Bank of Beverly Hills, Calabasas, CA — Total deposits of $1 billion and an estimated cost to the FDIC fund of $394 million. It is estimated that the bank has $179,000 of uninsured deposits. This is another genuine bank closure (aka worst case scenario). People can get their checks and move to another bank.
Michigan Heritage Bank, Farmington Hills, MI — Total deposits of $151.7 million and an estimated cost to the FDIC fund of $71.3 million.
American Southern Bank, Kennesaw, Georgia — Total deposits of $104.3 million and an estimated cost to the FDIC fund of $41.9 million.
These costs are kind of absurd (as a percentage of deposits). The FDIC is asleep at the switch again.
The other news was the closure of a credit union. Eastern Financial Florida Credit Union failed. This is the Calculated Risk post. This is the NCUA press release. From the release:
Eastern Financial Florida Credit Union was originally chartered in 1937 and today serves Broward, Miami-Dade, Palm Beach, Hillsborough, Pinellas counties and the Jacksonville area. The credit union has approximately $1.6 billion in assets and just over 200,000 members.
Actually, this line was fairly choice (also from the release):
While the credit union was placed into conservatorship because of declining financial condition, the decision to conserve a credit union enables the institution to continue normal operations with expert management in place.
Incidentally, the expert management is from Space Coast Credit Union of Melbourne, Florida, not Eastern Financial Florida Credit Union. I had to read the release again to be sure.
