Double 7’s FDIC Closing 7 More Banks

The FDIC swept into Puerto Rico on the last day of April, but instead of soaking up the sun, the Feds sent three banks based in Puerto Rico into receivership.  Before the day came to an end, two more banks in Missouri were added to the failed banks list as well as another bank in Michigan and one more in Washington.  That brings the total for the day to seven failed banks.  The year to date total has now reached 64 failed banks.

The double 7’s is a reference to the seven banks that failed this week combined with the seven banks that failed in the previous week.

Friday’s failed banks included:
Eurobank of San Juan, PR
R-G Premier Bank of Puerto Rico of Hato Rey, PR
Westernbank Puerto Rico based in Mayaguez, PR
CF Bancorp in Port Huron, MI
Champion Bank based in Creve Coeur, MO
BC National Banks of Butler, MO
Frontier Bank in Everett, WA

All of the failed banks were acquired by existing financial institutions.  Frontier Bank was taken over by Union Bank of San Francisco, CA.  All deposit for BC National Banks have been transferred to Community First Bank of Butler, MO.  All deposit accounts for Champion Bank, excluding certain brokered deposits, have been transferred to BankLiberty, Liberty, MO.  The deposits of CF Bancorp have, have been transferred to First Michigan Bank, Troy, MI with the exception of certain brokered deposits.

All deposit accounts of Westernbank, excluding certain brokered deposits, have been transferred to Banco Popular de Puerto Rico of Hato Rey, PR.  All deposit accounts of R-G Premier Bank of Puerto Rico, excluding certain brokered deposits, have been transferred to Scotiabank de Puerto Rico based in San Juan, PR.  The deposit accounts of Eurobank have been transferred to Oriental Bank and Trust, San Juan, PR excluding certain brokered deposits.

The largest of the bank failures was Westernbank Puerto Rico which had 46 bank branches and approximately $11.94 billion in total assets and $8.62 billion in total deposits.  The FDIC estimates that the cost to the Deposit Insurance Fund for this bank failure will be $3.31 billion.

The second largest bank was R-G Premier Bank of Puerto Rico which had 29 bank branches and approximately $5.92 billion in total assets and $4.25 billion in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund for this bank failure will be $1.23 billion.

Frontier Bank was the third largest bank with 51 bank branches and approximately $3.50 billion in total assets and $3.13 billion in total deposits.  The total estimated cost of this closure is $1.37 billion.

Eurobank came next in line based on asset size with 22 bank branches and approximately $2.56 billion in total assets and $1.97 billion in total deposits.  The FDIC estimates that the cost will be $743.9 million for Eurobank.

CF Bancorp was the next largest with 22 bank branches and approximately $1.65 billion in total assets and $1.43 billion in total deposits. The cost estimate for this bank closing is $615.3 million.

Champion Bank was the sixth largest bank and had just one bank branch with approximately $187.3 million in total assets and $153.8 million in total deposits.  The estimated cost to the Deposit Insurance Fund is set at $52.7 million for Champion Bank.

BC National Banks was the smallest loss with four bank branches and approximately $67.2 million in total assets and $54.9 million in total deposits and an estimated cost to shut it down at $11.4 million.

Tags: bank branches, bank failures, Banks, failed banks, FDIC

This entry was posted on Monday, May 3rd, 2010 at 1:25 pm and is filed under Money Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.