New Frontier Bank of Greeley, Colorado, the second Colorado bank this year to collapse, is bank failure #23 so far this year.
From the FDIC: New Frontier Bank…..was closed today by the State Bank Commissioner, by Order of the Banking Board of the Colorado Division of Banking, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of Greeley (DINB), which will remain open for approx. 30 days to allow depositors time to open accounts at other insured institutions.
All insured depositors of New Frontier are encouraged to transfer their insured funds to other banks…
As of March 24, 2009, New Frontier had total assets of $2.0 billion and total deposits of about $1.5 billion. At the time of closing, there were approximately $150 million in insured deposits and $4 million in deposits that potentially exceeded the insurance limits.
The cost to the FDIC’s Deposit Insurance Fund is estimated to be $670 million…..The last bank to be closed in the state was Colorado National Bank, Colorado Springs, on March 20, 2009.
This year’s tally of 23 bank failures is nearing the total for all of 2008, when 25 U.S. banks were seized by regulators.