Bank Failure Tally Tops 133 in 2009

Three banks failed Friday night, bringing the 2009 national tally to 133 and taking a quarter of a billion dollars bite out of the FDIC’s DIF. Regulators closed Republic Federal Bank in Miami, Florida; Valley Capital Bank in Mesa, Arizona; and SolutionsBank in Overland Park, Kansas.

  • 1st United Bank of Boca Raton, Fla. will assume all of the deposits of Republic Federal Bank, N.A., according to the FDIC. The four branches of Republic Federal Bank, N.A. will reopen on Monday as branches of 1st United Bank.

As of September 30, 2009, Republic Federal Bank, N.A. had total assets of $433.0 million and total deposits of approximately $352.7 million.

1st United Bank agreed to pay the FDIC a premium of 1.2% to assume all of the deposits of Republic Federal Bank. In addition to assuming all of the deposits of the failed bank, 1st United Bank agreed to purchase $267.1 million of the failed bank’s assets.

The failure is expected to cost the FDIC deposit insurance fund an estimated $122.6 million.

Republic Federal Bank, N.A. is the 131st bank to fail in the nation this year, and the 13th in Florida. The last FDIC-insured institution closed in the state was Commerce Bank of Southwest Florida, Fort Myers, on November 20, 2009.

  • Enterprise Bank & Trust of Clayton, Missouri, will assume all of the deposits of Valley Capital Bank, National Association of Mesa, Arizona, according to the FDIC. Valley Capital Bank’s sole branch will reopen on Monday as a branch of Enterprise Bank.

As of September 30, 2009, Valley Capital Bank had total assets of $40.3 million and total deposits of approximately $41.3 million.

Enterprise Bank paid the FDIC a 2% premium for the right to assume all of the deposits of Valley Capital Bank.

The failure is expected to cost the FDIC deposit insurance fund an estimated $7.4 million.

Valley Capital Bank is the 132nd bank to fail in the nation this year, and the forth in Arizona. The last FDIC-insured institution closed in the state was Bank USA, National Association, Phoenix, on October 30, 2009.

  • Arvest Bank of Fayetteville, Arkansas, will assume all of the deposits of  SolutionsBank of Overland Park, Kansas, according to the FDIC. The six branches of SolutionsBank will reopen on Saturday as branches of Arvest Bank.

As of September 30, 2009, SolutionsBank had total assets of $511.1 million and total deposits of approximately $421.3 million.

The failure is expected to cost the FDIC deposit insurance fund an estimated $122.1 million.

SolutionsBank is the 133rd bank to fail in the nation this year, and the third in Kansas. The last FDIC-insured institution closed in the state was First National Bank of Anthony, Anthony, on June 19, 2009.

Be the first to comment

Leave a Reply

Your email address will not be published.


*