Chicago : Washington Federal Bank for Savings fails after CEO's suicide

A low-profile, 104-year-old thrift in Chicago's Bridgeport neighborhood became the city's second bank failure of 2017 with no warning that the lender was troubled.

Washington Federal Bank for Savings, a $166 million-asset institution that on paper was a simple mortgage lender, was closed Dec. 15 by the U.S. Office of the Comptroller of the Currency. The thrift was extremely well-capitalized and showed no signs of liquidity issues.

In a terse statement, the OCC said it "acted after finding the bank had experienced substantial dissipation of assets due to unsafe or unsound practices, and that the bank's assets were less than its obligations to its creditors and others."

A spokesman declined to elaborate.

Adding to the mystery: The bank's chairman, CEO and president, John Gembara, hanged himself on Dec. 3, according to a spokeswoman for the Cook County Medical Examiner's office. That was just 12 days before the feds moved in.

Gembara's grandfather started the bank in 1913, and his father, Emil Gembara, ran it from 1980 to 1997 and remained chairman until his death in 2005. Emil Gembara was a deacon in his church and assisted in a Mass said by Pope John Paul II during the pope's 1979 visit to Chicago.

Efforts to reach Gembara's widow and other family members were unsuccessful.

The bank's sudden collapse apparently will leave some depositors holding the bag—a rarity when a bank fails and another lender assumes the branches and deposits.

The parent of Chicago-based Royal Savings Bank agreed to acquire only the insured deposits of Washington Federal from the Federal Deposit Insurance Corp. That left about $11.6 million that were above the FDIC's $250,000 threshold for insuring deposits when a bank fails. That amounted to 8 percent of Washington Federal's total $144 million in deposits, according to the FDIC.

The last time a Chicago bank's uninsured depositors weren't made whole in similar circumstances was in 2002 when Chicago-based Universal Federal Savings Bank failed, an FDIC spokesman said. Before that, the failure of Superior Bank & Trust, co-owned by the billionaire Pritzker family, led to losses for some depositors and then years of litigation to try to recover some of that shortfall.

More recently, the FDIC was unable to find a buyer for the deposits and assets of Chicago's New City Bank. Depositors in that case received checks for just the insured portion of their deposits.

The FDIC estimated the bank's failure would cost the agency's insurance fund more than $60 million. That was the most solid hint from the regulators that Washington Federal's filings bore no resemblance to the thrift's true financial condition.

In addition to Washington Federal's insured deposits, Royal agreed to purchase just $23.7 million of the thrift's $166 million in assets, according to the FDIC. The remainder will stay with the FDIC, which will attempt to sell or collect them to reimburse uninsured depositors for at least some of their losses.

The two locations of Washington Federal, in Bridgeport and Little Italy, now are branches of Royal Savings. Royal, which has $324 million in assets and seven local branches, has the option to purchase the buildings, it said in a release.

As of Sept. 30, Washington Federal's FDIC's filings showed virtually no delinquent loans. It posted $1.7 million in net income year to date, an annualized return on equity of 10.7 percent—quite healthy for a bank that small.

Last year, the bank generated $2.3 million in net income, a market it was on pace to hit in 2017 as well.

The failure appeared to be so sudden that Washington Federal's website still was up as of this afternoon. A note from the now-deceased Gembara read, "We know that many banks have more branches than we do, but few, if any, can offer the legacy of service to the community and to our customers that we can. It is how my grandfather began in the banking business 100 years ago, and it is how we continue to operate today."

Regulators shut small Illinois, Nevada banks; makes 28 US bank failures in 2011

(AP) -- Regulators on Friday shut down small banks in Illinois and Nevada, lifting the number of U.S. bank failures so far this year to 28 after 157 succumbed in 2010 to the gutted economy and mounting bad loans.

The Federal Deposit Insurance Corp. seized Western Springs National Bank and Trust, in Western Springs, Ill., with $186.8 million in assets and $181.9 million in deposits. It also closed Las Vegas-based Nevada Commerce Bank, with $144.9 million in assets and $136.4 million in deposits.

The failures of Western Springs and Nevada Commerce are expected to cost the deposit insurance fund $31 million and $31.9 million, respectively.

Heartland Bank and Trust Co., based in Bloomington, Ill., will assume the assets and deposits of Western Springs National Bank. Los Angeles-based City National Bank is taking over Nevada Commerce Bank.

The FDIC and Heartland Bank and Trust will share losses on $100.8 million of Western Springs' loans and other assets. It will share losses on $111.1 million of Nevada Commerce Bank's assets with City National.

Illinois has been one of the hardest-hit states for bank failures. Sixteen banks were shuttered in the state last year. The shutdown of Western Springs National Bank was the fourth bank failure in Illinois this year.

California, Florida and Georgia also have seen large numbers of bank failures.

The 157 bank closures last year topped the 140 shuttered in 2009. It was the most in a year since the savings-and-loan crisis two decades ago.

The FDIC has said that 2010 likely would mark the peak for bank failures. Already this year the pace of closures has slowed: By this time last year, regulators had closed 42 banks.

The 2009 failures cost the insurance fund about $36 billion. The failures last year cost around $21 billion, a lower price tag because the banks that failed in 2010 were smaller on average. Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three were closed in 2007.

The growing number of bank failures has sapped billions of dollars out of the deposit insurance fund. It fell into the red in 2009, and its deficit stood at $7.4 billion as of Dec. 31.

The number of banks on the FDIC's confidential "problem" list rose to 884 in the final quarter of last year from 860 three months earlier. The 884 troubled banks is the highest number since 1993, during the savings-and-loan crisis.

The FDIC expects the cost of resolving failed banks to total around $52 billion from 2010 through 2014.

Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. That insurance cap was made permanent in the financial overhaul law enacted in July.

U.S. Bank Collapses Reach 157 This Year as Six More Lenders Are Shuttered

Regulators shuttered six banks holding a total of $1.23 billion in assets, including three in Georgia and one each in Arkansas, Minnesota and Florida, as real-estate losses drive this year’s bank failures to 157.

Florida has lost 29 lenders this year while 21 banks in Georgia were seized, the Federal Deposit Insurance Corp. said today in statements on its website. Regulators have closed 322 banks since the start of 2008. Today’s six closures cost the FDIC’s deposit-insurance fund a total of $267.6 million.

“We’re over the hump in terms of number of failures and the average size, and potentially in the cost of them,” Bert Ely, a banking consultant in Alexandria, Virginia, said in an interview. The crisis is “far from over but we’re making headway.”

This week’s failures may be the final closures for 2010 because regulators seldom shut down banks on holiday weekends, Ely said. The next two Fridays are Christmas Eve, a market holiday in the U.S., and New Year’s Eve.

More than 500 banks may fail before the cycle that started in 2007 comes to a close, “given the severity of the problems and the prolonged nature of the recovery,” Ely said.

The FDIC said last month that its list of “problem” banks -- those at heightened risk of failure -- rose 3.7 percent to 860 in the third quarter, the most in 17 years. Banks on the confidential list had $379.2 billion in assets as of Sept. 30, down from $403 billion at the end of the second quarter.

Property Values

The financial crisis drove down home and commercial property values and pushed the unemployment rate above 10 percent. The U.S. economy rose 2.5 percent in the third quarter after declining as much as 6.8 percent in the fourth quarter of 2008, according to the U.S. Department of Commerce. The average over the last 20 years is growth of 2.9 percent.

The largest failure today was Coral Gables, Florida-based Bank of Miami, which was purchased by 1st United Bancorp of Boca Raton, the FDIC said. 1st United picked up almost $375 million in deposits, more than $442 million in assets and three branches.

“Their deposits are safe, FDIC-insured, and readily accessible,” 1st United Chief Executive Officer Rudy Schupp said in a statement. “Customers will be able to conduct business as usual at their existing branch locations with their familiar banking associates.”

Three banks in Georgia were shuttered, the largest being Chestatee State Bank of Dawsonville, the FDIC said. Little Rock, Arkansas-based Bank of the Ozarks Inc. added about $240 million in deposits and four branches with the Chestatee purchase.

Bank Rises to Record

Bank of the Ozarks rose to a record close of $42.60 today in Nasdaq Stock Market trading. It has surged 46 percent this year. This is the lender’s fourth failed-bank purchase this year, according to FDIC data.

Regulators also closed United Americas Bank, of Atlanta, and Appalachian Community Bank of McCaysville, Georgia, the FDIC said. Macon, Georgia-based State Bank and Trust Co. bought United, and Madisonville, Tennessee-based Peoples Bank of East Tennessee purchased Appalachian.

In Arkansas, regulators shut First Southern Bank of Batesville and the FDIC sold it to Southern Bank, based in Missouri. Southern paid the FDIC a 0.25 percent premium to acquire almost $156 million in deposits at First Southern.

Farmers & Merchants Savings Bank of Manchester, Iowa, purchased Community National Bank of Lino Lakes, Minnesota. It was the eighth bank to be closed by regulators in Minnesota this year, the FDIC said.

U.S. Bank Collapses Reach 157 This Year as Six More Lenders Are Shuttered

Regulators shuttered six banks holding a total of $1.23 billion in assets, including three in Georgia and one each in Arkansas, Minnesota and Florida, as real-estate losses drive this year’s bank failures to 157.

Florida has lost 29 lenders this year while 21 banks in Georgia were seized, the Federal Deposit Insurance Corp. said today in statements on its website. Regulators have closed 322 banks since the start of 2008. Today’s six closures cost the FDIC’s deposit-insurance fund a total of $267.6 million.

“We’re over the hump in terms of number of failures and the average size, and potentially in the cost of them,” Bert Ely, a banking consultant in Alexandria, Virginia, said in an interview. The crisis is “far from over but we’re making headway.”

This week’s failures may be the final closures for 2010 because regulators seldom shut down banks on holiday weekends, Ely said. The next two Fridays are Christmas Eve, a market holiday in the U.S., and New Year’s Eve.

More than 500 banks may fail before the cycle that started in 2007 comes to a close, “given the severity of the problems and the prolonged nature of the recovery,” Ely said.

The FDIC said last month that its list of “problem” banks -- those at heightened risk of failure -- rose 3.7 percent to 860 in the third quarter, the most in 17 years. Banks on the confidential list had $379.2 billion in assets as of Sept. 30, down from $403 billion at the end of the second quarter.

Property Values

The financial crisis drove down home and commercial property values and pushed the unemployment rate above 10 percent. The U.S. economy rose 2.5 percent in the third quarter after declining as much as 6.8 percent in the fourth quarter of 2008, according to the U.S. Department of Commerce. The average over the last 20 years is growth of 2.9 percent.

The largest failure today was Coral Gables, Florida-based Bank of Miami, which was purchased by 1st United Bancorp of Boca Raton, the FDIC said. 1st United picked up almost $375 million in deposits, more than $442 million in assets and three branches.

“Their deposits are safe, FDIC-insured, and readily accessible,” 1st United Chief Executive Officer Rudy Schupp said in a statement. “Customers will be able to conduct business as usual at their existing branch locations with their familiar banking associates.”

Three banks in Georgia were shuttered, the largest being Chestatee State Bank of Dawsonville, the FDIC said. Little Rock, Arkansas-based Bank of the Ozarks Inc. added about $240 million in deposits and four branches with the Chestatee purchase.

Bank Rises to Record

Bank of the Ozarks rose to a record close of $42.60 today in Nasdaq Stock Market trading. It has surged 46 percent this year. This is the lender’s fourth failed-bank purchase this year, according to FDIC data.

Regulators also closed United Americas Bank, of Atlanta, and Appalachian Community Bank of McCaysville, Georgia, the FDIC said. Macon, Georgia-based State Bank and Trust Co. bought United, and Madisonville, Tennessee-based Peoples Bank of East Tennessee purchased Appalachian.

In Arkansas, regulators shut First Southern Bank of Batesville and the FDIC sold it to Southern Bank, based in Missouri. Southern paid the FDIC a 0.25 percent premium to acquire almost $156 million in deposits at First Southern.

Farmers & Merchants Savings Bank of Manchester, Iowa, purchased Community National Bank of Lino Lakes, Minnesota. It was the eighth bank to be closed by regulators in Minnesota this year, the FDIC said.

Horizon Bank becomes year's 119th bank failure

(MarketWatch) -- Horizon Bank of Bradenton, Fla., became the 119th U.S. bank failure of 2010, according to the Federal Deposit Insurance Corp. on Friday.

Bank of the Ozarks (OZRK 36.61, -0.36, -0.97%) will assume Horizon's $164.6 million in deposits and purchase its $187.8 million in assets.

The bank failure marks the 23rd in Florida this year. The cost to the Deposit Insurance Fund is $58.9 million, FDIC said.

Illinois : FDIC shuts Palos Bank and Trust; First Midwest takes over assets, deposits

(AP) — Regulators on Friday shut down a bank in Illinois, bringing to 110 the number of U.S. banks failures this year amid mounting loan defaults.

The Federal Deposit Insurance Corp. took over Palos Bank and Trust Co., based in Palos Heights, Ill., with $493.4 million in assets and $467.8 million in deposits. First Midwest Bank, based in Itasca, Ill., agreed to assume the assets and deposits of the failed bank.

In addition, the FDIC and First Midwest Bank agreed to share losses on $343.8 million of Palos Bank's loans and other assets.

The failure of Palos Bank is expected to cost the deposit insurance fund $72 million.

It was the second straight week marked by the failure of an Illinois bank. Last week the FDIC seized Ravenswood Bank, a small bank in Chicago. The closure of Palos Bank brought to 14 the number of bank failures this year in Illinois.

With 110 closures nationwide so far this year, the pace of bank failures far outstrips that of 2009, which was already a brisk year for shutdowns. By this time last year, regulators had closed 77 banks.

The pace has accelerated as banks' losses mount on loans made for commercial property and development. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.

The number of bank failures is expected to peak this year and be slightly higher than the 140 that fell in 2009. That was the highest annual tally since 1992, at the height of the savings and loan crisis. The 2009 failures cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three succumbed in 2007.

The growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, and its deficit stood at $20.7 billion as of March 31.

The number of banks on the FDIC's confidential "problem" list jumped to 775 in the first quarter from 702 three months earlier, even as the industry as a whole had its best quarter in two years.

The FDIC expects the cost of resolving failed banks to total around $60 billion from 2010 through 2014.

The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.

Depositors' money — insured up to $250,000 per account — is not at risk, with the FDIC backed by the government. That insurance cap was made permanent in the financial overhaul law enacted last month.

Chicago : Ravenswood Bank fails, Wintrust unit is the buyer

(Crain's) — Ravenswood Bank on Friday became the 23rd Chicago-area bank to fail since the financial crisis began claiming local banks at the start of 2009.

A unit of Lake Forest-based Wintrust Financial Corp. purchased most of the assets and deposits from the Federal Deposit Insurance Corp.

Ravenswood, which was launched in 1996 during a wave of bank startups, had $264 million in assets and $269 million in deposits as of June 30. In addition to its main office on the Northwest Side, it has a branch in northwest suburban Mount Prospect.

Wintrust said it paid a 0.9% premium for $120 million in non-brokered deposits. Wintrust said it acquired a total of $190 million in assets at a discount of 12.6% and agreed to share losses with the FDIC on $161 million in Ravenswood's loans.

For $12.8-billion asset Wintrust, whose franchise is overwhelmingly suburban, the deal will give it another location in the city, a market it only recently entered through the purchase of failed Lincoln Park Savings Bank.

Ravenswood Bank succumbed to the same reality that has tripped up many of Chicago's smaller banks: an over-reliance on real estate lending. As of June 30, 40% of its loans were to commercial and residential developers or to investors in commercial real estate.

Branches of Ravenswood Bank will open Saturday as branches of Northbrook Bank & Trust Co., one of Wintrust's many Chicago-area banks.

The FDIC estimates the loss to its insurance fund from Ravenswood's failure will be $68 million.

Regulators shut banks in Fla, Mich, SC

Regulators shut down banks in Florida, Michigan, So Carolina; 96 US bank failures this year

WASHINGTON (AP) -- Regulators on Friday shut down three banks in Florida, two in South Carolina and one in Michigan, bringing to 96 the number of U.S. banks to succumb this year to the recession and mounting loan defaults.

The Federal Deposit Insurance Corp. on Friday took over the banks: Woodlands Bank, based in Bluffton, S.C., with $376.2 million in assets; First National Bank of the South, based in Spartanburg, S.C., with $682 million in assets; and Mainstreet Savings Bank of Hastings, Mich., with $97.4 million in assets.

The FDIC also seized Miami-based Metro Bank of Dade County, with assets of $442.3 million; Turnberry Bank of Aventura, Fla., assets of $263.9 million; and Olde Cypress Community Bank of Clewiston, Fla., assets of $168.7 million.

Miami-based NAFH National Bank, a newly chartered subsidiary of North American Financial Holdings Inc. of Charlotte, N.C., agreed to assume the assets and deposits of First National Bank of the South, Metro Bank of Dade County and Turnberry Bank. North American Financial Holdings said Friday the acquisitions give it "a strong presence in attractive banking markets," with 10 branches in the Miami area and 13 throughout South Carolina.

Bank of the Ozarks, based in Little Rock, Ark., agreed to assume the assets and deposits of Woodlands Bank, while CenterState Bank of Florida is assuming the assets and deposits of Olde Cypress Community Bank; and Commercial Bank, based in Alma, Mich., is acquiring the assets and deposits of Mainstreet Savings Bank.

The failure of Woodlands Bank is estimated to cost the deposit insurance fund $115 million. Estimated costs for the others are: First National Bank of the South, $74.9 million; Mainstreet Savings Bank, $11.4 million; Metro Bank of Dade County, $67.6 million; Turnberry Bank, $34.4 million; and Olde Cypress Community Bank, $31.5 million.

With 96 closures nationwide so far this year, the pace of bank failures far outstrips that of 2009, which was already a brisk year for shutdowns. By this time last year, regulators had closed 57 banks. The pace has accelerated as banks' losses mount on loans made for commercial property and development.

The number of bank failures is expected to peak this year and be slightly higher than the 140 that fell in 2009. That was the highest annual tally since 1992, at the height of the savings and loan crisis. The 2009 failures cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008, the year the financial crisis struck with force, and only three succumbed in 2007.

As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, and its deficit stood at $20.7 billion as of March 31.

The number of banks on the FDIC's confidential "problem" list jumped to 775 in the first quarter from 702 three months earlier, even as the industry as a whole had its best quarter in two years.

A majority of institutions posted profit gains in the January-March quarter. But many small and midsized banks are likely to continue to suffer distress in the coming months and years, especially from soured loans for office buildings and development projects.

The FDIC expects the cost of resolving failed banks to total around $60 billion from 2010 through 2014.

The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.

Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government.

Regulators Close Four Banks, Bringing Year's Total to 90

State and federal regulators closed four banks in Maryland, New York and Oklahoma, bringing the total of U.S. bank failures this year to 90.

A trio of bank failures in Puerto Rico and three more closures in Michigan and Missouri raises the number of U.S. bank failures this year to 63

(MarketWatch) -- A trio of bank failures in Puerto Rico and three more closures in Michigan and Missouri took a nearly $6 billion bite out of the federal deposit-insurance fund on Friday, while raising the number of U.S. bank failures this year to 63.

The Federal Deposit Insurance Corp. said Puerto Rico's Westernbank, Eurobank and R-G Premier Bank of Puerto Rico were all closed, with a combined $14.84 billion in deposits.

Their closure will cost the deposit-insurance fund roughly $5.28 billion, the regulator said.

According to a report in The Wall Street Journal, the FDIC hasn't grappled with such a significant problem in a single banking market since the savings and loan crisis of the 1990s.

Later in the day, the FDIC announced the closure of CF Bancorp. in Port Huron, Mich. The Michigan bank had $1.43 billion in deposits as of Dec. 31.

Two Missouri institutions, Creve Coeur-based Champion Bank and Butler-based BC National Banks, also were closed.

Champion Bank had $153.8 million in deposits as of Dec. 31, while BC National Banks had $54.9 million in deposits, according to the FDIC.

Chicago : Broadway Bank fails, MB Financial is the buyer; Harris buys Amcore

(Crain's) — Banking regulators seized seven Chicago-area banks late Friday, including Rockford-based Amcore Bank and Chicago’s Broadway Bank, owned by the family of Democratic U.S. Senate candidate Alexi Giannoulias.

Buyers of the seven failed lenders included Harris N.A., which obtained the biggest prize in Amcore, with $3.8 billion in assets and $3.4 billion in deposits housed in 52 branches in Illinois and Wisconsin, including 24 in suburban Chicago.

Acquiring the $1.1 billion in deposits and $1.2 billion in assets of Broadway Bank was Chicago-based MB Financial Inc. MB Financial also obtained the $486 million in assets and $492 million in deposits of Chicago’s New Century Bank, which was also closed by state regulators.

Four other Chicago-area lenders — Lincoln Park Savings Bank, Citizens Bank & Trust of Chicago, Wheatland Bank of Naperville and Peotone Bank — also failed Friday evening.

For Harris, the Amcore purchase is its first foray into buying failed banks in the two years since banks began suffering casualties in the financial crisis.

Harris is acquiring 52 branches of Amcore, which will open as Harris branches on Saturday. It also agreed to purchase the vast majority of Amcore's $3.8 billion in assets, with the FDIC agreeing to share losses on $2 billion of those.

Harris has held discussions with Amcore periodically over the years before getting the chance to get the franchise for virtually nothing.

"This fits us strategically," Harris CEO Ellen Costello said in an interview Friday night.

She said Harris will continue looking for opportunities in Illinois, Wisconsin and Indiana as more banks fail. "We're easily able to take this on and others as well," she said.

Broadway Bank ran aground after suffering heavy losses on commercial real estate loans and was unable to raise $85 million needed to keep it solvent.

Alexi Giannoulias was the bank's chief lender and vice-president from 2002 to 2006. He has come under fire recently for working for the bank when it loaned money to several organized crime figures, and his family has been criticized for taking $70 million in dividends in 2007 and 2008 just as loans were staring to sour.

In a statement, Broadway CEO Demetris Giannoulias, older brother of Alexi, said, "This is a difficult day for bank employees, for my family, for this community and for all those who built businesses and protected their savings with the help of this bank. . . .We fought to carry out the vision my father had when he founded Broadway Bank 30 years ago, but our bank — like many businesses — has struggled during these challenging times."

Among the other failures:

• Privately held Republic Bank of Chicago took over the deposits and assets of tiny Citizens Bank & Trust of Chicago, a Northwest Side lender.
• Acquiring Lincoln Park Savings Bank is Northbrook Bank & Trust Co., with $899 million in assets. It will take on $200 million in Lincoln Park Savings' assets and $172 million in deposits, housed in four branches.
• A unit of Lake Forest-based Wintrust Financial Corp. acquired Wheatland Bank of Naperville and its $437 million in assets and $439 million in deposits.
• And Itasca-based First Midwest Bank acquired Peotone Bank, taking on $130 million in assets and $127 million in deposits.

The depth of Broadway Bank's loan problems was underscored by the FDIC's estimates of the losses its insurance fund will incur from each of the failures. Despite the fact that Broadway is less than one-third the size of Amcore, the FDIC estimated its failure would cost the fund $394 million, while Amcore's would cost $220 million.

MB Financial paid no premium for Broadway's deposits, and the FDIC agreed to share in losses on virtually all of the bank's loans. The same was true of New Century, which, like Broadway, focused almost exclusively on commercial real estate lending.

New Century CEO Faye Pantazelos, who founded the institution in 1999, had said earlier in the week she was considering resigning before regulators closed it down. But sources said she was at the bank on Friday. Ms. Pantazelos didn't respond to requests for comment.

Bank failures: The 8 worst-hit stat

1. Georgia

Unemployment rate: 10.5%

Number of bank failures in last year: 29

Failed banks in last year: Omni National Bank, American Southern Bank, Silverton Bank, Southern Community Bank, Community Bank of West Georgia, Neighborhood Community Bank, First Piedmont Bank, Security Bank of Gwinnett County, Security Bank of North Fulton, Security Bank of North Metro, Security Bank of Bibb County, Security Bank of Houston County, Security Bank of Jones County, ebank, First Coweta Bank, Georgian Bank, American United Bank, United Security Bank, The Buckhead Community Bank, First Security National Bank, The Tattnall Bank, RockBridge Commercial Bank, First National Bank of Georgia, Community Bank and Trust, Century Security Bank, Appalachian Community Bank, Bank of Hiawassee, McIntosh Commercial Bank, Unity National Bank

2. Illinois

Unemployment rate: 11.4%

Number of bank failures in last year: 21

Failed banks in last year: Strategic Capital Bank, Citizens National Bank, Bank of Lincolnwood, John Warner Bank, First State Bank of Winchester, Rock River Bank, Elizabeth State Bank, First National Bank of Danville, Founders Bank, Mutual Bank, InBank, Platinum Community Bank, Corus Bank, First DuPage Bank, Community Bank of Lemont, Park National Bank, Benchmark Bank, Independent Bankers' Bank, Town Community Bank & Trust, George Washington Savings Bank, Bank of Illinois

3. Florida

Unemployment rate: 12.2%

Number of bank failures in last year: 18

Failed banks in last year: BankUnited, Integrity Bank, First State Bank, Community National Bank of Sarasota County, Partners Bank, Hillcrest Bank Florida, Flagship National Bank, Century Bank, Orion Bank, Commerce Bank of Southwest Florida, Republic Federal Bank, Peoples First Community Bank, Premier American Bank, Florida Community Bank, Marco Community Bank, Sun American Bank, Old Southern Bank, Key West Bank

4. California

Unemployment rate: 12.5%

Number of bank failures in last year: 16

Failed banks in last year: First Bank of Beverly Hills, Vineyard Bank, MetroPacific Bank, Mirae Bank, Temecula Valley Bank, Affinity Bank, San Joaquin Bank, San Diego National Bank, California National Bank, Pacific National Bank, United Commercial Bank, Pacific Coast National Bank, Imperial Capital Bank, First Federal Bank of California, First Regional Bank, La Jolla Bank

5. Minnesota

Unemployment rate: 7.3%

Number of bank failures in last year: 10

Failed banks in last year: Horizon Bank, Mainstreet Bank, Brickwell Community Bank, Jennings State Bank, Riverview Community Bank, Prosperan Bank, St. Stephen State Bank, Marshall Bank N.A., 1st American State Bank of Minnesota, State Bank of Aurora

6. Washington

Unemployment rate: 9.5%

Number of bank failures in last year: 6

Failed banks in last year: Westsound Bank, Venture Bank, Horizon Bank, Evergreen Bank, American Marine Bank, Rainier Pacific Bank

7. Texas

Unemployment rate: 8.2%

Number of bank failures in last year: 6

Failed banks in last year: Millennium State Bank of Texas, Guaranty Bank, Citizens National Bank, Madisonville State Bank, North Houston Bank, The La Coste National Bank

8. Arizona

Unemployment rate: 9.5%

Number of bank failures in last year: 6

Failed banks in last year: Union Bank (National Association), Community Bank of Arizona, First State Bank, Bank USA, Valley Capital Bank, Desert Hills Bank

Regulators shut LibertyPointe Bank in NYC

Regulators on Thursday shut down LibertyPointe Bank in New York City, boosting to 27 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.

from http://www.libertypointebank.com/

On Thursday, March 11, 2010, LibertyPointe Bank, New York, NY was closed by the New York State Banking Department. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

All deposit accounts have been transferred to Valley National Bank, Wayne, NJ. For more information on Valley National Bank, visit us at www.ValleyNationalBank.com.

The FDIC has assembled useful information regarding your relationship with LibertyPointe Bank. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.

Please select the link below to read more about this event:

FDIC Bank Closing Information for LibertyPointe Bank

Online service will remain available.

George Washington Bank fails; Ohio's FirstMerit takes over

George Washington Savings Bank in Orland Park, Illinois was closed by state banking regulators, with Akron, Ohio-based FirstMerit Bank acquiring all the deposits and virtually all of the assets of the 120-year-old bank.

George Washington is the second Chicago-area bank to fail so far this year. Many more, stung by the real estate collapse, are expected to follow.

FirstMerit, whose CEO, Paul Greig, is a longtime Chicago-area banker, is entering the market through the acquisition of the Illinois banking operations of St. Louis-based First Banks. The purchase of the four branches of George Washington provides a quick add-on acquisition.

FirstMerit is assuming nearly all of George Washington's $413 million in assets and its $397 million in deposits. The Federal Deposit Insurance Corp. entered into an agreement to share losses on $324 million of those assets. The FDIC estimated the hit to its fund for bank failures will be $141.4 million.

In addition to south suburban Orland Park, George Washington has branches in Oak Lawn, Western Springs and the north side of Chicago. All four locations will open as branches of FirstMerit on Saturday.

Seven U.S. Banks Are Seized, Raising Year’s Failure Toll to 140

Seven U.S. banks were seized by regulators, bringing this year’s total of failed lenders to 140 as financial companies are tested by the recession and the Federal Deposit Insurance Corp. anticipates more shutdowns.

Banks with $14.4 billion in total assets were closed yesterday in six U.S. states, the FDIC said in statements on its Web site. The agency is overseeing the dissolution of banks at the fastest pace in 17 years.

Two of the closures were in California. The assets and deposits of Federal Bank of California in Santa Monica were bought by closely held OneWest Bank, which acquired IndyMac Federal Bank this year. Imperial Capital Bank was bought by City National Corp., the Beverly Hills-based parent of City National Bank, which expanded in Southern California with the purchase.

“Imperial Capital Bank is a very good fit for City National, given that eight of its nine locations are in communities we serve,” City National Chief Executive Officer Russell Goldsmith said in a statement. “We’re pleased to contribute to the increased stability of the banking system.”

Federal Bank was the biggest lender seized yesterday, with $6.1 billion of assets and $4.5 billion in deposits, according to the FDIC. Based in La Jolla, Imperial Capital had assets of $4 billion and $2.8 billion in deposits.

Earlier this week, the FDIC boosted its 2010 budget by 56 percent to $4 billion to manage further shutdowns. The total budget will increase from $2.6 billion and the set-aside for bank failures doubles to $2.5 billion over this year, according to a proposal approved by the FDIC board. The agency staff will increase to 8,653 next year from 7,010 this year.

more at http://www.bloomberg.com/apps/news?pid=20601087&sid=aA4tDKBIB6Ek&pos=3

Five banks shut down by regulators on Friday

Mutual Bank was closed Friday by the Illinois Department of Financial Professional Regulation's division of banking, which appointed the Federal Deposit Insurance Corp. as receiver.

United Central Bank of Garland, Texas, is assuming Mutual's $1.6 billion in deposits and essentially all of its $1.6 billion in assets.

In addition, the FDIC and First United Central Bank entered into a loss-sharing agreement covering $1.3 billion of the assets of Mutual Bank. Its 12 branches will reopen Saturday as offices of United Central Bank.

The FDIC estimates that Mutual Bank’s failure will cost the deposit insurance fund $696 million.

Mutual Bank was the largest of five banks shut down Friday in the U.S. The others were in Florida, New Jersey, Ohio and Oklahoma. The FDIC was appointed receiver of all five banks.

The written agreement between First Mutual Bancorp of Illinois Inc. and the Federal Reserve Bank of Chicago, signed May 8, required First Mutual to show how it would boost its capital, which as of March 31 was below minimum levels required by regulators, according to filings with the Fed.

The agreement was the second regulatory action against the bank in recent months. In December the FDIC, along with state banking regulators, issued a “cease and desist” order requiring the bank to raise capital and recognize more loan losses.

First Mutual posted a $15-million loss in the first three months of 2009, after adding $17 million in the first quarter to its reserves for losses from bad loans. That followed a $68-million loss in 2008.

A whopping $496 million — or 37% — of the bank’s $1.35 billion in loans were at least 30 days past due as of March 31, according to the Fed filing. Seriously delinquent loans, those at least 90 days past due, totaled $247 million, or 18%.

The 69 bank failures nationwide this year compare with 25 last year and three in 2007.

As the economy has soured — with unemployment rising, home prices tumbling and loan defaults soaring — bank failures have cascaded and sapped billions out of the deposit insurance fund. It now stands at its lowest level since 1993, $13 billion as of the first quarter.

While losses on home mortgages may be leveling off, delinquencies on commercial real estate loans remain a hot spot of potential trouble, FDIC officials say. If the recession deepens, defaults on the high-risk loans could spike. Many regional banks hold large numbers of them.

The number of banks on the FDIC's list of problem institutions leaped to 305 in the first quarter — the highest number since 1994 during the savings and loan crisis — from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.

Regulators Shut Down Four Small Banks

The Federal Deposit Insurance Corp.'s closure of Sherman County Bank of Loup City, Neb.; Riverside Bank of the Gulf Coast, of Cape Coral, Fla.; Corn Belt Bank and Trust of Pittsfield, Ill.; and Pinnacle Bank of Beaverton, Ore., brings the total number of bank failures this year to 13.

2008 Bank Failure Update

• PFF Bank and Trust, Pomona, CA November 21, 2008
• Downey Savings and Loan, Newport Beach, CA November 21, 2008
• The Community Bank, Loganville, GA November 21, 2008
• Security Pacific Bank, Los Angeles, CA November 7, 2008
• Franklin Bank, SSB, Houston, TX November 7, 2008
• Freedom Bank, Bradenton, FL October 31, 2008
• Alpha Bank & Trust, Alpharetta, GA October 24, 2008
• Meridian Bank, Eldred, IL October 10, 2008
• Main Street Bank, Northville, MI October 10, 2008
• Washington Mutual Bank, Henderson, NV September 25, 2008
• and Washington Mutual Bank FSB, Park City, UT
• Ameribank, Northfork, WV September 19, 2008
• Silver State Bank, Henderson, NV En Español September 5, 2008
• Integrity Bank, Alpharetta, GA August 29, 2008
• The Columbian Bank and Trust, Topeka, KS August 22, 2008
• First Priority Bank, Bradenton, FL August 1, 2008
• First Heritage Bank, NA, Newport Beach, CA July 25, 2008
• First National Bank of Nevada, Reno, NV July 25, 2008
• IndyMac Bank, Pasadena, CA July 11, 2008
• First Integrity Bank, NA, Staples, MN May 30, 2008
• ANB Financial, NA, Bentonville, AR May 9, 2008
• Hume Bank, Hume, MO March 7, 2008
• Douglass National Bank, Kansas City, MO January 25, 2008