Pace of Bank Closings Picks Up

Last week, only one bank was closed in the US. That was Bank of Wyoming, number 24 on my list of banks most likely to close in 2009. Bank of Wyoming had only one office and deposits of just $67 million. Its operation has been taken over by Central Bank & Trust in Lander, WY. The estimate cost to the insurance fund is $27 million or 40 cents on the dollar.

This week, four banks were closed. The largest was Vineyard Bank, NA in Rancho Cucamonga, CA which was number 49 on my list. Vineyard Bank had 16 offices had deposits of about $1.6 billion. The offices and accounts have been transferred to California Bank & Trust. The estimated cost to the insurance fund is $579 million or 36 cents on the dollar.

Close behind is Temecula Valley Bank with eleven branches in California and deposits of $1.3 billion. The offices and accounts will be taken over by First-Citizens Bank of Raleigh, NC with an estimated cost to the insurance fund of $391 million or 30 cents per dollar on deposit.

BankFirst with just 2 offices in Sioux Falls and Minneapolis will be taken over by Alerus Financial, NA. Alerus will operate the South Dakota office as First Dakota National Bank and will operate the Minnesota office as Alerus Financial, NA. BankFirst had deposits of $254 million and assets of $275 million. Alerus will take only $72 million of the assets while Beal Bank Nevada will take $177 million in loans. The remaining assets will stay with the FDIC until they can find someone willing to take them. The closing is estimated to cost the FDIC $91 million or 36 cents per dollar.

Down in Georgia, First Piedmont Bank, also with 2 offices, has been taken over by First American Bank and Trust of Athens, GA. First Piedmont Bank had deposits of $115 million and the closing will cost the FDIC insurance fund $29 million or 25 cents per dollar.

Four banks closed this week, one last week plus seven closed on July 2nd makes 12 banks closed in the first three weeks of July, double the pace of the first half of the year.

Striking three more, there are 42 banks left on my current list of the 50 65 Banks Most Likely to Close in 2009.

1 Magnet Bank, Salt Lake City, UT
2 Citizens Community Bank, Ridgewood, NJ
3 FirstBank Financial Services, McDonough, GA
4 Westsound Bank, Bremerton, WA
5 Suburban Federal Savings Bank, Crofton, MD
6 America West Bank, Layton, UT
7 Silver Falls Bank, Silverton, OR
8 Ocala National Bank, Ocala, FL
9 Sun Security Bank, Ellington, MO
10 Eastern Savings Bank, FSB, Hunt Valley, MD
11 Alliance Bank, Culver City, CA
12 FirstCity Bank, Stockbridge, GA
13 Chestatee State Bank, Dawsonville, GA
14 First Security National Bank, Norcross, GA
15 Ocean Bank, Miami, FL
16 Family Bank and Trust Co., Palos Hills, IL
17 Southern Community Bank, Fayetteville, GA
18 BankCherokee, Saint Paul, MN
19 First Tuskegee Bank, Tuskegee, AL
20 Federal Trust Bank, Sanford, FL
21 Pinnacle Bank, Beaverton, OR
22 Lake Country Community Bank, Morristown, MN
23 Mesa Bank, Mesa, AZ
24 Bank of Wyoming, Thermopolis, WY
25 1st American State Bank of Minnesota, Hancock, MN
26 First State Bank of Altus, Altus, OK
27 EvaBank, Eva, AL
28 Strategic Capital Bank, Champaign, IL
29 Ebank, Atlanta, GA
30 Polk County Bank, Johnston, IA
31 Parkway Bank, Rogers, AR
32 Security Bank of Gwinnett County, Suwanee, GA
33 State Bank of Park Rapids, Park Rapids, MN
34 Herrin Security Bank, Herrin, IL
35 Omni National Bank, Atlanta, GA
36 Northpointe Bank, Grand Rapids, MI
37 Towne Bank of Arizona, Mesa, AZ
38 Timberland Bank, El Dorado, AR
39 Blue Ridge Savings Bank, Inc., Asheville, NC
40 First Piedmont Bank, Winder, GA
41 Select Bank, Grand Rapids, MI
42 Oxford Bank, Oxford, MI
43 Security Bank of North Metro, Woodstock, GA
44 MetroPacific Bank, Irvine, CA
45 Earthstar Bank, Southampton, PA
46 Neighborhood Community Bank, Newnan, GA
47 The Home Savings and Loan Company, Youngstown, OH
48 Heritage Community Bank, Glenwood, IL
49 Vineyard Bank, NA, Rancho Cucamonga, CA
50 Community Bank of Lemont, Lemont, IL
51 Mainstreet Bank, Forest Lake, MN
52 Mutual Bank, Harvey, IL
53 Freedom Bank of Georgia, Commerce, GA
54 Newton County Loan & Savings FSB, Goodland, IN
55 Riverside Bank, Cape Coral, FL
56 BankUnited, Coral Gables, FL
57 American Sterling Bank, Sugar Creek, MO
58 The Park Avenue Bank, New York, NY
59 First Commerce Community Bank, Douglasville, GA
60 Centennial Bank, Ogden, UT
61 Warren Bank, Warren, MI
62 Peoples First Community Bank, Panama City, FL
63 Corus Bank, Chicago, IL
64 Butler Bank, Lowell, MA
65 Republic Federal Bank, Miami, FL