Three more banks were shuttered by the FDIC on July 22nd bringing the bank closure total for 2011 (so far) to 58.
As with previous bank failure reviews the last reported capital adequacy ratios were (obviously) low. Additionally the pattern of these struggling banks showing very limited charge-offs, even with significant non-accrual volume continues. As I’ve discussed in past posts banks that aren’t showing charge-offs but have non-accrual loans are in denial and are not good prospects for non performing note or REO sales.
The FDIC reports “The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Southshore Community Bank will be $8.3 million and for LandMark Bank of Florida, $34.4 million.
The closings are the 56th and 57th FDIC-insured institutions to fail in the nation so far this year and the eighth and ninth in Florida. The last FDIC-insured institution closed in the state was First Peoples Bank, Port Saint Lucie, on July 15, 2011.”
Southshore Community Bank Apollo Beach FL acquired by American Momentum Bank
Tier 1 Risk Based 2.61 %
Total Risk Based 3.89 %
42% of their commercial real estate was in late or non accrual status or else REO. 59% of their residential was late or non performing or in REO.
The FDIC said “The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $213.6 million. … Bank of Choice is the 58th FDIC-insured institution to fail in the nation this year, and the fifth in Colorado. The last FDIC-insured institution closed in the state was Signature Bank, Windsor, on July 8, 2011.”
Bank of Choice Greeley CO acquired by Bank Midwest, N.A.
Tier 1 Risk Based 3.47 %
Total Risk Based 4.77 %
20% of their non owner occupied commercial real estate portfolio was late or non performing. 17% of multifamily late or non performing.