Bank Failures: 5 Institutions ClosedRunning Tally: 30 Failures so far in 2010 Five banking institutions - four banks and one credit union - were closed by state and federal regulators on Friday, March 5.
These latest closings raise to 30 the number of failed banking institutions so far in 2010.
Here is a rundown of the latest failures:
Sun American Bank
Sun American Bank, Boca Raton, Florida, was closed by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Sun American Bank.
The 12 branches of Sun American Bank were to reopen today as branches of First-Citizens Bank & Trust Company. Depositors of Sun American Bank will automatically become depositors of First-Citizens Bank & Trust Company.
As of December 31, 2009, Sun American Bank had approximately $535.7 million in total assets and $443.5 million in total deposits. First-Citizens Bank & Trust Company did not pay a premium to acquire the deposits of Sun American Bank. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase essentially all of the assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $103.8 million.
Lawrence County School Employees Federal Credit Union
The National Credit Union Administration (NCUA) liquidated Lawrence County School Employees Federal Credit Union (Lawrence FCU) of New Castle, Pennsylvania, and accepted New Castle, Pennsylvania, based First Choice Federal Credit Union's offer to purchase and assume the credit union.
First Choice Federal Credit Union purchased and assumed a portion of Lawrence FCU's assets, loans and shares, enabling Lawrence FCU's members to receive uninterrupted credit union service. NCUA retained the remaining assets, loans, and shares. Lawrence FCU's declining financial condition led to its closure and subsequent purchase and assumption. At closure, Lawrence FCU had $2.6 million in assets and served 1,085 members.
First Choice Federal Credit Union is a full service credit union and its members have access to a broad array of financial services. With assets of $22.3 million, its two branch locations serve approximately 4,415 members who either live, work, worship, or attend school in Lawrence County, Pennsylvania or work for one of the companies in its field of membership.
Bank of Illinois
Bank of Illinois, Normal, Illinois, was closed by the Illinois Department of Financial Professional Regulation - Division of Banking, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heartland Bank and Trust Company, Bloomington, Illinois, to assume all of the deposits of Bank of Illinois.
The two branches of Bank of Illinois were to reopen on Saturday as branches of Heartland Bank and Trust Company. Depositors of Bank of Illinois will automatically become depositors of Heartland Bank and Trust Company.
As of December 31, 2009, Bank of Illinois had approximately $211.7 million in total assets and $198.5 million in total deposits. Heartland Bank and Trust Company will pay the FDIC a premium of 3.61 percent to assume all of the deposits of Bank of Illinois.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $53.7 million.
Waterfield Bank, Germantown, Maryland, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. To protect the insured depositors, the FDIC created Waterfield Bank, FA a new depository institution chartered by the OTS and insured by the FDIC to take over the operations of Waterfield Bank. The new institution will remain open until April 5, 2010, to allow depositors access to their insured funds and time to move accounts to other insured institutions.
The bank had one branch location. It also took deposits from customers via the Internet and 38 affinity groups.
At the time of closing, the receiver immediately transferred to Waterfield Bank, FA, all insured deposits of the failed bank, except certificates of deposits (CDs) and individual retirement accounts (IRAs). The FDIC will mail checks directly to customers with CDs and IRAs for the amount of their insured funds, on Monday morning, March 8.
As of December 31, 2009, Waterfield Bank had $155.6 million in assets and $156.4 million in deposits
The FDIC estimates that the cost to its Deposit Insurance Fund will be $51.0 million.
The FDIC approved the payout of the insured deposits of Centennial Bank, Ogden, Utah. The bank was closed by the Utah Department of Financial Institutions, which appointed the FDIC as receiver.
The FDIC entered into an agreement with Zions First National Bank, Salt Lake City, Utah, to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments.
The FDIC was unable to find another financial institution to take over the banking operations of Centennial Bank. As a result, checks to the retail depositors for their insured funds will be mailed. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits.
As of December 31, 2009, Centennial Bank had approximately $215.2 million in total assets and $205.1 million in total deposits. At the time of closing, the bank had an estimated $1.8 million in uninsured funds. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.
The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $96.3 million.