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Regulators Close Three More Banks

Late Friday, three banks closed in quick succession, with the Federal Deposit Insurance Corp. named receiver. The Office of Thrift Supervision closed Crofton, Md.-based Suburban Federal Savings Bank. Its deposit accounts transferred to Tappahannock, Va.-based Bank of Essex. The Office of the Comptroller of the Currency closed Florida-based Ocala National Bank, the non-brokered deposit accounts of which transferred to Winter Haven, Fla.-based CenterState Bank of Florida. The Utah Department of Financial Institutions closed Salt Lake City-based MagnetBank. No institution was willing to take over failed MagnetBank’s deposits, forcing the FDIC to directly refund insured deposits. “This bank did not have an attractive franchise value, and not many retail deposits or core deposits,” said FDIC spokesman David Barr, according to a MarketWatch bulletin. MagnetBank had total assets of $292.9 million and total deposits of $282.8 million, with no estimated uninsured funds. Suburban Federal had a total $360 million in assets and $302 million in deposits. Bank of Essex, when taking it over, agreed to purchase approximately $348 million in assets at a $45 million discount, and to enter a loss-sharing transaction with the FDIC, which estimates the cost to the insurance fund will total some $126 million. Four-branched Ocala National had total assets of $223.5 million and total deposits of $205.2 million. CenterState, when taking over, agreed to assume all the failed bank’s deposits for a 1.7 percent premium, as well as $23.5 million in assets. The cost to the insurance fund is an estimated $99.6 million. Ocala National’s $17.2 million in brokered deposits were not part of the agreement with CenterState and will be insured directly by the FDIC. The three closings Friday brought the total number of banks closed so far in 2009 to six; the FDIC and state regulators on Jan. 16 shut down two banks and a third — Redlands, Calif.-based Ist Centennial Bank — on Jan. 23. Write to Diana Golobay at [email protected].

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