Two Florida banks failed last week, but the cost of taking over the two firms is expected to be only a small fraction of a third bank failure. Sixteen percent of this year’s bank failures were in the Sunshine State. Two Colorado institutions made the obituaries.
The Florida Office of Financial Regulation closed Southshore Community Bank Friday and named the Federal Deposit Insurance Corp. receiver, which happens every time a federally insured bank fails.
The Apollo Beach, Fla., bank had $45 million in total deposits as of March 31. Total assets stood at $46 million and included $6 million in one- to four-family residential loans, $15 million in commercial real estate loans and $6 million in construction-and-development loans.
Southshore was founded in 2005. Just 10 employees were on its payroll. In March 2010, the FDIC issued a cease-and-desist order against Southshore.
The state also seized LandMark Bank of Florida. Based in Sarasota, the 11-year-old bank had 53 people on staff.
LandMark’s total deposits were $247 million and its assets stood at $275 million. Assets reflected $64 million in home loans, $118 million in CRE loans and $36 million in C&D loans. Both Landmark and parent Landmark Financial Holding Co. entered formal agreements with the Federal Reserve Bank of Atlanta and the State of Florida Office of Financial Regulation in November 2009.
Southshore and LandMark were each taken over by American Momentum Bank.
The FDIC expects Southshore’s cost to its Deposit Insurance Fund to be $8 million, while the tab on LandMark is pegged at $34 million. Nine out of the 58 FDIC-insured bank failures this year have been in Florida.
Losses from the Southshore and LandMark paled in comparison to the day’s next casualty.
That was in Greeley, Colo., where the Colorado Division of Banking closed down Bank of Choice. The seized institution was established in 1896. As of the end of March, 214 people worked there.
The failed bank had a whopping $1.07 billion in assets of which $116 million was residential loans, $259 million was commercial mortgages and $167 million was C&D holdings. Deposits were $925 million.
The FDIC issued a cease-and-desist order against Bank of Choice in May 2010, while an FDIC prompt-and-corrective action was issued in March.
Bank Midwest, N.A., agreed to purchase $853 million of Bank of Choice’s assets. It assumed all of its deposits.
Bank of Choice’s demise, the 58th for the FDIC this year, is projected to cost $214 million.
Bank of Choice was just one of two financial institutions to fail Friday in Colorado.
The Commissioner of the Colorado Division of Financial Services took control of Saguache County Credit Union and handed it to the National Credit Union Administration as conservator. The NCUA will operate the Moffat, Colo.-based institution as it works to resolve operational and financial deficiencies. The three-branch credit union has just $18 million in assets and 3,165 members.
Mortgage Daily has tracked to failure of 17 credit unions this year, bringing the count for all mortgage-related casualties to 85.
