Four Bank Failures Cost FDIC $700 Million
Federal regulators shut down another four banks Friday as the extent of the damage to the financial industry continues to unwind. All told, Friday's failures will cost the Federal Deposit Insurance Corp.'s (FDIC) insurance fund an estimated $698.4m and put a total $2.29bn in combined assets on the line for purchase or disposition. It is the 26th, 27th, 28th and 29th failures so far in 2009. California Department of Financial institutions closed First Bank of Beverly Hills and named the FDIC receiver. First Bank of Beverly Hills as of year-end '08 boasted total assets of $1.5bn and total deposits of $1bn, an estimated $179,000 of which the FDIC expects is uninsured. The FDIC approved the payout of all insured deposits and said it expects a $394m cost to the insurance fund. Read the FDIC's statement on First Bank of Beverly Hills. Office of Thrift Supervision closed First Bank of Idaho and named the FDIC receiver. First Bank of Idaho's seven branches reopen today as branches of Minneapolis-based US Bank, which assumes all of the failed bank deposits -- except from brokers. First Bank as of year-end 08 boasted $488.9m in total assets, with $374m in total deposits. US Bank paid a 0.55% premium for the failed bank's deposits, except for the $112.8m in brokered deposits. The FDIC plans to pay the brokers directly for those deposits. US bank also agreed to purchase $17.8m of the failed bank's assets, the remainder of which the FDIC will retain for later disposition. First Bank's failure will cost the Deposit Insurance Fund an estimated $191.2m. Read the FDIC's statement on First Bank of Idaho. Michigan Office of Financial and Insurance Regulation shut down Michigan Heritage Bank. Level One Bank agreed to assume all the failed bank's deposits except those from brokers. Michigan Heritage as of year-end 08 boasted total assets of $184.6m and total deposits of $151.7m. Level One paid a 1.16% premium for all but $50m in brokered deposits. The FDIC plans to pay the brokers directly for those amounts. Level One also agreed to purchase $46.1m of the failed bank's assets, the remainder of which the FDIC retains for later disposition. The failed bank will cost the insurance fund an estimated $71.3m. Read the FDIC's statement on Michigan Heritage Bank. Georgia Department of Banking and Finance closed American Southern Bank. Bank of North Georgia agreed to purchase $55.6m of the failed bank's deposits at a 0.3-bps premium as well as $31.3m in assets, but declined to purchase $48.7m in brokered deposits. The FDIC plans to pay brokers directly for those funds and to retain the failed bank's remaining assets for later disposition. American Southern boasted as of late March total assets worth $112.3m and total deposits worth $104.3m. Its failure will cost the insurance fund an estimated $41.9m. Read the FDIC's statement on American Southern Bank. Write to Diana Golobay at email@example.com.