Press Release

Banesco USA, Coral Gables, Florida, Assumes All of the Deposits of Security Bank, National Association, North Lauderdale, Florida 

FOR IMMEDIATE RELEASE
May 4, 2012
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

 

Security Bank, National Association, North Lauderdale, Florida, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Banesco USA, Coral Gables, Florida, to assume all of the deposits of Security Bank, National Association.

The three branches of Security Bank, National Association will reopen on Monday as branches of Banesco USA. Depositors of Security Bank, National Association will automatically become depositors of Banesco USA. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Security Bank, National Association should continue to use their existing branch until they receive notice from Banesco USA that it has completed systems changes to allow other Banesco USA branches to process their accounts as well.

This evening and over the weekend, depositors of Security Bank, National Association can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2012, Security Bank, National Association had approximately $101.0 million in total assets and $99.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, Banesco USA agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-523-8209. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/securitybank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.8 million. Compared to other alternatives, Banesco USA’s acquisition was the least costly resolution for the FDIC’s DIF. Security Bank, National Association is the 23rd FDIC-insured institution to fail in the nation this year, and the third in Florida. The last FDIC-insured institution closed in the state was First Guaranty Bank and Trust Company of Jacksonville, in Jacksonville, on January 27, 2012.

 

New paper from Federal Reserve Bank of Boston outlines some of the facts of the mortgage crisis.

Summary:

This paper presents 12 facts about the mortgage market. The authors argue that the facts refute the popular story that the crisis resulted from financial industry insiders deceiving uninformed mortgage borrowers and investors. Instead, they argue that borrowers and investors made decisions that were rational and logical given their ex post overly optimistic beliefs about house prices. The authors then show that neither institutional features of the mortgage market nor financial innovations are any more likely to explain those distorted beliefs than they are to explain the Dutch tulip bubble 400 years ago. Economists should acknowledge the limits of our understanding of asset price bubbles and design policies accordingly.

Press Release

Pacific Premier Bank, Costa Mesa, California, Assumes All of the Deposits of Palm Desert National Bank, Palm Desert, California 

FOR IMMEDIATE RELEASE
April 27, 2012
Media Contact:
LaJuan Williams-Young
Office: 202-898-3876
Email: lwilliams-young@fdic.gov

 

Palm Desert National Bank, Palm Desert, California, was closed today by the Office of the Comptroller of the Currency (OCC), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Pacific Premier Bank, Costa Mesa, to assume all of the deposits of Palm Desert National Bank.

The sole branch of Palm Desert National Bank will reopen on Monday as a branch of Pacific Premier Bank. Depositors of Palm Desert National Bank will automatically become depositors of Pacific Premier Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Palm Desert National Bank should continue to use their existing branch until they receive notice from Pacific Premier Bank that it has completed systems changes to allow other Pacific Premier Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Palm Desert National Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, Palm Desert National Bank had approximately $125.8 million in total assets and $122.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, Pacific Premier Bank agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-591-2820. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; on Monday from 8 a.m. to 8 p.m., PDT; and thereafter from 9:00 a.m. to 5:00 p.m., PDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/palmdesert.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.1 million. Compared to other alternatives, Pacific Premier Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Palm Desert National Bank is the 22nd FDIC-insured institution to fail in the nation this year, and the first in California. The last FDIC-insured institution closed in the state was Citizens Bank of Northern California, Nevada City, on September 23, 2011.

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FOR IMMEDIATE RELEASE
April 27, 2012
Contact: Dean DeBuck
(202) 874-5770

OCC Appoints Receiver for Plantation Federal Bank, Pawleys Island, SC

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for Plantation Federal Bank, Pawleys Island, SC, a federal savings association. As of December 31, 2011, the institution had approximately $486.4 million in total assets.

The OCC acted after finding that the institution had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices. The OCC also found that the institution is likely to incur losses that will deplete its capital, the institution is critically undercapitalized, and there is no reasonable prospect that the institution will become adequately capitalized without federal assistance.

The FDIC will release information about the resolution of the institution.

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Press Release

Great Southern Bank, Reeds Spring, Missouri, Assumes All of the Deposits of Inter Savings Bank, fsb D/B/A Interbank, fsb, Maple Grove, Minnesota 

FOR IMMEDIATE RELEASE
April 27, 2012
Media Contact:
LaJuan Williams-Young
Email: lwilliams-young@fdic.gov

 

Inter Savings Bank, fsb D/B/A InterBank, fsb, Maple Grove, Minnesota, was closed today by the Office of the Comptroller of the Currency (OCC), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great Southern Bank, Reeds Spring, Missouri, to assume all of the deposits of InterBank, fsb.

The four branches of InterBank, fsb will reopen on Monday as branches of Great Southern Bank. Depositors of InterBank, fsb will automatically become depositors of Great Southern Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of InterBank, fsb should continue to use their existing branch until they receive notice from Great Southern Bank that it has completed systems changes to allow other Great Southern Bank branches to process their accounts as well.

This evening and over the weekend, depositors of InterBank, fsb can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, InterBank, fsb had approximately $481.6 million in total assets and $473.0 million in total deposits. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase essentially all of the assets.

The FDIC and Great Southern Bank entered into a loss-share transaction on $413.0 million of InterBank, fsb’s assets. Great Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-405-8357. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/Interbank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $117.5 million. Compared to other alternatives, Great Southern Bank’s acquisition was the least costly resolution for the FDIC’s DIF. InterBank, fsb is the 20th FDIC-insured institution to fail in the nation this year, and the third in Minnesota. The last FDIC-insured institution closed in the state was Home Savings of America, Little Falls, on February 24, 2012.

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Press Release

First Federal Bank, Charleston, South Carolina, Assumes All of the Deposits of Plantation Federal Bank, Pawleys Island, South Carolina 

FOR IMMEDIATE RELEASE
April 27, 2012
Media Contact:
LaJuan Williams-Young
Office: 202-898-3876
Email: lwilliams-young@fdic.gov

 

Plantation Federal Bank, Pawleys Island, South Carolina, was closed today by the Office of the Comptroller of the Currency (OCC), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Federal Bank (formerly known as First Federal Savings and Loan Association of Charleston), Charleston, South Carolina, to assume all of the deposits of Plantation Federal Bank.

The six branches of Plantation Federal Bank will reopen on Monday as branches of First Federal Bank, including the three branches operating under the name of First Savers Bank. Depositors of Plantation Federal Bank will automatically become depositors of First Federal Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Plantation Federal Bank should continue to use their existing branch until they receive notice from First Federal Bank that it has completed systems changes to allow other First Federal Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Plantation Federal Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, Plantation Federal Bank had approximately $486.4 million in total assets and $440.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Federal Bank agreed to purchase essentially all of the assets.

The FDIC and First Federal Bank entered into a loss-share transaction on $221.7 million of Plantation Federal Bank’s assets. First Federal Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-640-2538. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/plantation.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $76.0 million. Compared to other alternatives, First Federal Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Plantation Federal Bank is the 21st FDIC-insured institution to fail in the nation this year, and the first in South Carolina. The last FDIC-insured institution closed in the state was BankMeridian, N.A., Columbia, on July 29, 2011.

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Press Release

Sonabank, McLean, Virginia, Assumes All of the Deposits of HarVest Bank of Maryland, Gaithersburg, Maryland 

FOR IMMEDIATE RELEASE
April 27, 2012
Media Contact:
LaJuan Williams-Young
Office: 202-898-3876
Email: lwilliams-young@fdic.gov

 

HarVest Bank of Maryland, Gaithersburg, Maryland, was closed today by the Maryland Commissioner of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Sonabank, McLean, Virginia, to assume all of the deposits of HarVest Bank of Maryland.

The four branches of HarVest Bank of Maryland will reopen during normal business hours as branches of Sonabank. Depositors of HarVest Bank of Maryland will automatically become depositors of Sonabank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of HarVest Bank of Maryland should continue to use their existing branch until they receive notice from Sonabank that it has completed systems changes to allow other Sonabank branches to process their accounts as well.

This evening and over the weekend, depositors of HarVest Bank of Maryland can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, HarVest Bank of Maryland had approximately $164.3 million in total assets and $145.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, Sonabank agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-523-8275. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/harvest.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.2 million. Compared to other alternatives, Sonabank’s acquisition was the least costly resolution for the FDIC’s DIF. HarVest Bank of Maryland is the 19th FDIC-insured institution to fail in the nation this year, and the second in Maryland. The last FDIC-insured institution closed in the state was Bank of the Eastern Shore, Cambridge, earlier today.

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Press Release

Alma Bank, Astoria, New York, Assumes All of the Deposits of Fort Lee Federal Savings Bank, FSB, Fort Lee, New Jersey 

FOR IMMEDIATE RELEASE
April 20, 2012
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

 

Fort Lee Federal Savings Bank, FSB, Fort Lee, New Jersey, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Alma Bank, Astoria, New York, to assume all of the deposits of Fort Lee Federal Savings Bank, FSB.

The sole branch of Fort Lee Federal Savings Bank, FSB will reopen on Saturday as a branch of Alma Bank. Depositors of Fort Lee Federal Savings Bank, FSB will automatically become depositors of Alma Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Fort Lee Federal Savings Bank, FSB should continue to use their existing branch until they receive notice from Alma Bank that it has completed systems changes to allow other Alma Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Fort Lee Federal Savings Bank, FSB can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, Fort Lee Federal Savings Bank, FSB had approximately $51.9 million in total assets and $50.7 million in total deposits. Alma Bank will pay the FDIC a premium of 1.85 percent to assume all of the deposits of Fort Lee Federal Savings Bank, FSB. In addition to assuming all of the deposits of the failed bank, Alma Bank agreed to purchase approximately $15.7 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-430-8098. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/fortlee.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.0 million. Compared to other alternatives, Alma Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Fort Lee Federal Savings Bank, FSB is the seventeenth FDIC-insured institution to fail in the nation this year, and the first in New Jersey. The last FDIC-insured institution closed in the state was First State Bank, Cranford, on October 14, 2011.

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FOR IMMEDIATE RELEASE
April 20, 2012
Contact: Dean DeBuck
(202) 874-5770

OCC Appoints Receiver for Fort Lee Federal Savings Bank

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for Fort Lee Federal Savings Bank, Fort Lee, New Jersey, a federal savings association. As of December 31, 2011, the institution had approximately $51.9 million in total assets.

The OCC acted after finding that the institution had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices. The OCC also found that the institution incurred losses that depleted its capital, the institution is critically undercapitalized, and there is no reasonable prospect that it will become adequately capitalized without federal assistance.

The FDIC will release information about the resolution of the institution.

The Fiscal Times has a great chart.

Hat tip to the Big Picture Blog, and Bianco Research.

Money quote:

A 5% drop in home prices from current levels would likely push all the near-negative equity homes into the negative equity camp. In other words, a 5% decline in housing would mean at least 27% of homes would be underwater. A 10% decline, as predicted in the story above, would probably put one third of all mortgages underwater.

 

A Chart!

 

In a move that literally everybody in the world has already called, Spain is hurting bad you guys.

Money quote:

As for creditors, euro-zone governments failed to impress with a half-hearted decision to increase the bloc’s bail-out funds last week. And the ECB has little room for manoeuvre. Mr Draghi signalled at his press conference that any talk of unwinding the ECB’s unconventional stimulus measures, which include the provision of €1 trillion of three-year liquidity to euro-zone banks in December and February, was premature. But another dose of liquidity is not on the cards. With few catalysts for good news and lots of reasons to feel nervous about the euro zone’s prospects, Mr Draghi’s assessment looks off-beam. Of course markets are uneasy.