Last week’s failure of a bank in New Orleans is likely to cost the the bank deposit fund nearly $1 billion. More credit unions than banks have failed so far this year.
On Friday, the Civil District Court, Orleans Parish, Louisiana, placed First NBC Bank under the conservatorship of the state’s
Office of Financial Institutions.
The New Orleans firm was then seized and shut down by the state regulator. No reason was given by the state for the decision to close down the bank.
First NBC was established in May 2006.
Nearly 600 people were employed at the financial institution as of year-end 2016.
Deposits totaled $3.54 billion, while $4.74 billion in assets included $0.447 billion in single-family loans and $2.068 billion in loans secured by commercial real estate, construction loans and multifamily loans — a high ratio of commercial property loans to total assets compared to previous bank failures.
The state appointed the Federal Deposit Insurance as receiver. In turn, the FDIC conducted a secret bidding process and made a deal with Gulfport, Mississippi-based
Whitney Bank to assume deposits of the failed bank and acquire $1 billion of its assets.
Losses to the FDIC’s Deposit Insurance Fund as a result of First NBC’s demise are expected to reach a whopping $997 million. It was just the fourth bank failure so far this year.
On April 20,
Community United Federal Credit Union was placed into conservatorship by the National Credit Union Administration. It was chartered in 1966 and served 4,844 members and businesses in Ware County, Georgia. Assets were $23.162 million.
“NCUA placed Community United Federal Credit Union into conservatorship to allow the credit union to continue regular operations with experienced management in place and to correct operational weaknesses,” the regulator said of the Waycross, Georgia, institution. “While continuing normal member services, NCUA will work to resolve issues affecting the credit union’s safety and soundness.”
In Shreveport, Louisiana, the NCUA placed Shreveport Federal Credit Union in conservatorship on April 13. It was chartered in 1956, serviced 22,235 members in Louisiana and Mississippi. Assets were $0.108 billion.
The administration gave the exact same reason for the Shreveport FCU’s
failure as it did for Community United’s.
In November 2016, the Michigan Department of Insurance and Financial Services placed Valley State Credit Union into the NCUA’s conservatorship.
On March 31, the state agency
said ELGA Credit Union has acquired Saginaw, Michigan-based Valley State.
March 17 was the date that the
Florida Conference AME Church Federal Credit Union of Tallahassee, Florida, was liquidated by the NCUA. Just 560 members were serviced by the credit union, while assets were just $0.002 billion.
“NCUA made the decision to liquidate the Florida Conference AME Church Federal Credit Union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations,” a statement said.
Including Community United, Shreveport and AME, Mortgage Daily has tracked four credit union failures so far during 2017. Mortgage Daily has reported on a total of eight mortgage-related organizations that have closed or failed so far this year.
