twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Another Costly Week for Bank Failures

4 bank failures on Friday

Jan. 31, 2011

By staff

It was a costly week for bank failures, with total related losses expect to come in around $0.5 billion for the second week in a row. Three of the four banks that were closed down had survived the Great Depression. In this week's round, the Federal Deposit Insurance Corp. stopped disclosing terms of the deals it made with the acquiring banks.

Friday's first bank seizure was The First State Bank, an institution founded in 1911. The FDIC took over the institution from the Oklahoma State Banking Department, sold it to Bank 7 and projected related losses of around $20 million.

After that, Wisconsin's Department of Financial Institutions shut down Evergreen State Bank. The bank was established in 1899 and had a few more than 50 employees. Deposit Insurance Fund losses as a result of Evergreen's failure are projected at $23 million.

An FDIC prompt corrective action was issued against Evergreen last month, while an FDIC cease-and-desist order was issued against a year ago.

The next failure was in Louisville, Colo.

FirstTier Bank was closed by the Colorado Division of Banking and handed over to the FDIC as receiver.

But no buyers were found for the bank, which had $782 million in assets and $723 million in deposits. Part of the reason was that FirsTier's balance sheet was loaded with $292 million in construction-and-development loans.

The FDIC created the Deposit Insurance National Bank of Louisville to handle an orderly liquidation of the seven-year-old bank. Insured deposits that haven't been transferred to another bank by Feb. 28 -- the last day that the temporary institution will remain open -- will be mailed back to the depositors.

After all is said and done, the FDIC -- which hit FirstTier with a cease-and-desist order in January 2010 -- projects related losses of $243 million.

Friday's final failure -- First Community Bank in Taos, N.M. -- was also the most costly for the Deposit Insurance Fund. The company had faced a prompt corrective action in August 2010 by the Federal Reserve Board.

U.S. Bank, N.A., stepped up to take over the $2.31 billion in assets and $1.94 billion in deposits from the FDIC.

First Community's demise is projected to generate $260 million in associated losses.

First Community, founded in 1922, was the 11th FDIC-insured bank failure this year.

While the FDIC had previously reported the premiums paid for deposits and the amount of loss-share agreements, neither was provided for any of this week's bank failures.

The more than $0.5 billion in total losses this week follow last week's nearly $0.5 billion in projected losses.

In a Federal Register filing, the FDIC solicited comments on its interim final rule to resolve too-big-to-fail institutions. The rule was authorized under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

"The FDIC's
purpose in issuing this rule is to provide greater clarity and certainty about how key components of this authority will be implemented and to ensure that the liquidation process under Title II reflects the Dodd-Frank Act's mandate of transparency in the liquidation of failing systemic financial companies," the Federal Register stated.

Jan. 28, 2011, Bank Failures
Bank Location Regulator Deposits Deposit prem. paid Assets Home Loans CRE Loans C&D Year Founded # Emp Acquirer FDIC Loss-Share Amount Deposit Ins. Fund Losses
Evergreen State Bank Stoughton, Wisconsin Wisconsin Department of Financial Institutions $195 million na $247 million $43 million $71 million $15 million 1899 53 McFarland State Bank na $23 million
First Community Bank Taos, New Mexico New Mexico Financial Institutions Division $1,940 million na $2,310 million $161 million $830 million $411 million 1922 494 U.S. Bank, National Association na $260 million
The First State Bank Camargo, Oklahoma Oklahoma State Banking Department $41 million na $44 million $2 million $0.4 million $0.1 million 1911 5 Bank 7 na $20.1 million
FirsTier Bank Louisville, Colorado Colorado Division of Banking $723 million na $782 million $47 million $174 million $292 million 2003 102 none na $243 million

next story

back to current headlines

Bank news

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.
Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders