Seven Banks Fail, Making 140 in ’09

The list of bank failures in the nation keeps getting longer. Banks in Florida, Michigan, California, Alabama, Georgia and Illinois were seized by state regulators Friday, bringing the total number of failed banks this year to 140, the Federal Deposit Insurance Corporation [FDIC] said.

Bank Failure #134

• The FDIC approved Friday the payout of the insured deposits of RockBridge Commercial Bank of Atlanta, Georgia. The FDIC however, said it was unable to find another financial institution to take over the banking operations of RockBridge Commercial Bank.

As of Sept. 30, 2009, RockBridge Commercial Bank had $294.0 million in total assets and approx. $291.7 million in total deposits. At the time of closing, the bank had an estimated $2.1 million in uninsured funds. The failure is expected to cost the FDIC deposit insurance fund an estimated $124.2 million.

RockBridge Commercial Bank is the 134th bank to fail this year and the twenty-fifth in Georgia since The Buckhead Community Bank, Atlanta, was closed on December 4, 2009.

Bank Failure #135

• The Federal Deposit Insurance Corp said Hancock Bank, Gulfport, Mississippi, assumed Friday all of the deposits of Peoples First Community Bank of Panama City, Florida, which was closed by the Office of Thrift Supervision.

Peoples First Community Bank had $1.8 billion in total assets and approx. $1.7 billion in total deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $556.7 million.

Peoples First Community Bank is the 135th bank to fail in the nation this year, and the fourteenth in Florida. The last FDIC-insured institution closed in the state was Republic Federal Bank, N.A., Miami, on December 11, 2009.

Bank Failure #136

• Citizens State Bank of New Baltimore, Michigan, was closed Friday by the Michigan Office of Financial and Insurance Regulation.

As of September 30, 2009, Citizens State Bank had $168.6 million in total assets and $157.1 million in total deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $76.6 million.

Citizens State Bank is the 136th bank to fail this year and the fourth in Michigan. The last FDIC-insured institution closed in the state was Home Federal Savings Bank, Detroit, on November 6, 2009.

Bank Failure #137

• New South Federal Savings Bank of Irondale, Alabama, was closed Friday by the Office of Thrift Supervision, which appointed the FDIC as receiver.

All of the Deposits of New South Federal Savings Bank, Irondale, Alabama were assumed by the Beal Bank of Plano, Texas.

As of September 30, 2009, New South Federal Savings Bank had approximately $1.5 billion in total assets and $1.2 billion in total deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $212.3 million.

New South Federal Savings Bank is the 137th bank to fail in the nation this year, and the third in Alabama. The last FDIC-insured institution closed in the state was CapitalSouth Bank, Birmingham, on August 21, 2009.

Bank Failure #138

• The FDIC announced Friday it created a bridge bank to take over the operations of Independent Bankers’ Bank of Springfield, Illinois, after the bank — which had about 450 client banks in four states, and operated one regional office — was closed by the Illinois Department of Financial and Professional Regulation—Division of Banking.

Independent Bankers’ Bank had $585.5 million in assets and approx. $511.5 in deposits. At the time of closing, the bank had an estimated $269,000 in uninsured funds. The failure is expected to cost the FDIC deposit insurance fund an estimated $68.4 million.

Independent Bankers’ Bank is the 138th bank to fail in the nation this year and the twenty-first in Illinois. The last FDIC-insured institution to fail in the state was Benchmark Bank, Aurora, on December 4, 2009.

Bank Failure #139

• Imperial Capital Bank of La Jolla, California, was closed Friday by the California Department of Financial Institutions. The FDIC said it entered into a purchase and assumption agreement with City National Bank, Los Angeles, California, to assume all of the deposits of Imperial Capital Bank.

As of September 30, 2009, Imperial Capital Bank had approximately $4.0 billion in total assets and $2.8 billion in total deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $619.2 million.

Imperial Capital Bank is the 139th bank to fail in the nation this year, and the sixteenth in California. The last FDIC-insured institution closed in the state was Pacific Coast National Bank, San Clemente, on November 13, 2009.

Bank Failure #140

• First Federal Bank of California, Santa Monica, California, was closed Friday by the Office of Thrift Supervision. To protect the depositors, the FDIC entered into a purchase and assumption agreement with OneWest Bank, FSB, Pasadena, California, to assume all of the deposits of First Federal Bank of California.

As of September 30, 2009, First Federal Bank had approximately $6.1 billion in total assets and $4.5 billion in total deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $146.3 million.

First Federal Bank of California is the 140th bank to fail in the nation this year, and the seventeenth in California. The last FDIC-insured institution to be closed in the state was Imperial Capital Bank, La Jolla, earlier today.