The Federal Deposit Insurance Corporation [FDIC] took over four banks on Friday, bringing the total number of banks to fail in the United States to 69 this year.
The banks closed are located in New Jersey, Ohio, Florida, Illinois and Oklahoma. The banks include First State Bank of Altus, Oklahoma; Integrity Bank, Jupiter, Florida; Peoples Community Bank, West Chester, Ohio; First BankAmericano, Elizabeth, New Jersey; and Mutual Bank, Harvey, Illinois.
Bank Failure #65
U.S. bank regulators closed First State Bank of Altus, Oklahoma, on Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Herring Bank, Amarillo, Texas, to assume all of the deposits of First State Bank.
The Federal Deposit Insurance Corp said First State Bank had $103.4 million in assets and approx. 98.2 million in deposits. In addition to assuming all of the deposits of the failed bank, Herring Bank will purchase approx. $64.4 million in assets. The failure is expected to cost the FDIC deposit insurance fund an estimated $25.2 million.
First State Bank of Altus is the first bank to fail in Oklahoma. The last FDIC-insured institution to be closed in the state was American Bank of Commerce, Oklahoma City, on March 26, 1992.
Bank Failure #66
U.S. bank regulators closed Integrity Bank, Jupiter, Florida, on Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Integrity Bank.
The Federal Deposit Insurance Corp said Integrity Bank had $119 million in assets and approx. 102 million in total deposits. In addition to assuming all of the deposits of the failed bank, Stonegate Bank agreed to purchase approx. $52 million of assets. The failure is expected to cost the FDIC deposit insurance fund an estimated $46 million.
Integrity Bank is the fourth bank to fail in in Florida. The last FDIC-insured institution to be closed in the state was BankUnited, FSB, Coral Gables, on May 21, 2009.
Bank Failure #67
U.S. bank regulators closed Peoples Community Bank, West Chester, Ohio, on Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Financial Bank, National Association, Hamilton, Ohio, to assume all of the deposits of Peoples Community Bank.
The Federal Deposit Insurance Corp said Peoples Community Bank had $705.8 million in assets and approx. 598.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Financial Bank, N.A. agreed to purchase essentially all of the assets.The failure is expected to cost the FDIC deposit insurance fund an estimated $129.5 million.
Peoples Community Bank is the first bank to fail in Ohio. The last FDIC-insured institution to be closed in the state was Miami Valley Bank, Lakeview, October 4, 2007.
Bank Failure #68
U.S. bank regulators closed First BankAmericano, Elizabeth, New Jersey, on Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Crown Bank, Brick, New Jersey, to assume all of the deposits of First BankAmericano.
The Federal Deposit Insurance Corp said First BankAmericano had $166 million in assets and approx. $157 million in total deposits. In addition to assuming all of the deposits of the failed bank, Crown Bank agreed to purchase essentially all of the assets.The failure is expected to cost the FDIC deposit insurance fund an estimated $15 million.
First BankAmericano is the second bank to fail in New Jersey. The last FDIC-insured institution to be closed in the state was Citizens Community Bank, Ridgewood, May 1, 2009.
Bank Failure #69
U.S. bank regulators closed Mutual Bank, Harvey, Illinois, on Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Central Bank, Garland, Texas, to assume all of the deposits of Mutual Bank.
The Federal Deposit Insurance Corp said Mutual Bank had $1.6 billion in assets and approx. $1.6 billion in total deposits. In addition to assuming all of the deposits of the failed bank, United Central Bank agreed to purchase essentially all of the assets.The failure is expected to cost the FDIC deposit insurance fund an estimated $696 million.
Mutual Bank is the thirteenth bank to fail in Illinois. The last FDIC-insured institution to be closed in the state was First National Bank of Danville, Danville, on July 2, 2009.
The economy had little if anything to do with the failure of First State Bank Altus, Oklahoma. The former president, was using a venture capital investment arm, to operate frauds and scams. They had received $126 million in unearned Oklahoma state income tax credits by filing two false claims it had invested $421 million in one company. Yet only $32 million was invested. Involvement by state officials allowed this to be pulled off.
At the same time they were trying to scam two Colorado land owners out of several 1,000s acres around Steamboat Springs. Part of that scam was the way they issued loans to friends in a kickback scheme to tie up the Colorado property and foreclose, without the knowledge of the land owner partners. The Colorado victims/partners called for an outside audit the Altus Gang packed up and left Colorado virtually overnight. Then sent one of their people back to retrieved the computer they had been using. That person was caught trying to load the computer in their car. The files found on that computer contained all the evidence needed to prove or track down how the fraud works.
Also found on that computer were the financials for the Oklahoma tax credit scam.
That investigation is far from over. It was the use of the banks money to extend loans in the land scam, that took the bank down. The FDIC’s action cut the bank loose from the real problems which are still under investigation. You can see an amazing story of frauds at Prowlingowl.com