twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com 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 MortgageDaily.com.

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

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

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

Press Releases
Reports and announcements from MortgageDaily.com.

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

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



Friday's Failures to Cost Over $1 billion

Vineyard Bank, Temecula Valley Bank seized by bank regulators

July 20, 2009

By MortgageDaily.com staff


Government losses on the failure of four financial institutions Friday are projected at more than $1 billion. The two biggest failures had a heavy concentration of commercial and construction-and-land-development loans.

The Office of the Comptroller of the Currency closed down Vineyard Bank, National Association, and handed control over to the Federal Deposit Insurance Corporation, a news release late Friday said.

"The bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices," the OCC said. "The bank incurred losses that depleted its capital, and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance."

The OCC had issued a cease-and-desist order against Vineyard last year.

Vineyard, established in 1981, employed 254 people as of March 31. In late 2006, Rancho Bank was merged into Vineyard.

Vineyard had $1.9 billion in assets as of March 31, including $49 million in one- to four-family mortgages, $620 million in commercial mortgages and $631 million in construction-and-land-development loans.

California Bank & Trust assumed all of the $1.6 billion in deposits as of March 31 at the Rancho Cucamonga, Calif.-based bank -- though $134 million in brokered deposits were retunred. In addition, California Bank & Trust acquired around $1.8 billion of Vineyard's assets with the FDIC sharing in losses on $1.5 billion of the assets.

The FDIC expects its Deposit Insurance Fund to take around a $579 million hit from Vineyard's collapse -- the 56th this year.

Over in Temecula, Calif., the state's Department of Financial Institutions announced late Friday the closure of Temecula Valley Bank. Inadequate capital was cited.

"The Department of Financial Institution has been closely monitoring the bank because of its inadequate capital level," the state said. "The Department of Financial Institutions had ordered it to increase its capital reserves to a safe and sound level, but efforts by the bank to do so were unsuccessful."

Temecula faced a $24,000 FDIC civil money penalty on March 9, while the FDIC issued a cease-and-desist order on Feb. 12.

The 12-year-old institution had 228 employees as of March 31. Assets were $1.5 billion as of May 31. Residential mortgage holdings were $42 million, while commercial mortgages were $684 million and construction-and-land-development assets were $42 million as of March 31.

First-Citizens Bank and Trust Co. of Raleigh, N.C., agreed to assume all of Temecula's $1.3 billion in deposits. Around $0.3 billion in brokered deposits will be returned. First-Citizens also agreed to acquire all of the failed institution's assets with the FDIC sharing in losses on $1.3 billion of the assets.

The FDIC projected it will lose $391 million on the failure of Temecula -- which was the 57th federally insured institution to fail during 2009.

In addition to Vineyard and Temecula -- First Piedmont Bank, which had $115 million in assets, and BankFirst, which had $275 million in assets, also failed Friday. Including all four of Friday's failures, FDIC losses are projected at $1.1 billion.

Including Friday's casualties, MortgageDaily.com has reported on the closing of 103 mortgage-related companies or operations in 2009.

Landmarc Capital and Investment Co. -- which was seized last month by the Arizona Superintendent of Financial Institutions -- agreed to a Maricopa County Superior Court judge's order appointing Superintendent Felecia Rotellini as permanent receiver of the company, a press release last week said. A hearing allowing Landmarc to make a case for not being forced into receivership was canceled.

Rotellini has full authority to conserve, rehabilitate or liquidate Landmarc's assets as necessary.

"Landmarc's principals consented to the court's order that specifically requires them to
cooperate with the receiver by identifying investors, the amounts they invested, and any property securing their investments; identifying and listing the ownership interests of investors in Landmarc's pooled accounts; and identifying properties repossessed by Landmarc," the statement said.

next story

back to current headlines

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.



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

MBS

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