Mortgage Daily Logo

2nd Week of FL, WA Bank Failures

Mortgage News

It was the second week in a row that two banks failed, and one of those institutions was in Florida while the other was in Washington.

In Crawfordville, Fla., the Florida Office of Financial Regulation seized Wakulla Bank and handed it over to the Federal Deposit Insurance Corp. as receiver.

Wakulla was established in 1974. Employment stood around 135 as of June 30.

Parent Wakulla Bancorp entered a formal agreement with the Federal Reserve Bank of Atlanta on Dec. 22, 2009.

The highest bidder for the failed institution was Centennial Bank, which assumed all of Wakulla’s $386 million in deposits at par. Centennial also acquired Wakulla’s $424 million in assets, though the FDIC agreed to a loss-sharing arrangement on $213 million of the assets. Assets included $81 million in one- to four-unit residential loans, $81 million in commercial mortgages and $67 million in construction-and-development loans.

The FDIC expects to lose $113 million on Wakulla’s failure.

A few hours later, Shoreline Bank was shut down by the Washington Department of Financial Institutions and also handed over to the FDIC — which issued a cease-and-desist order against the bank in December. The 11-year-old institution employed just 31 people at the end of June.

“Shoreline Bank has suffered significant loan losses associated with land development and construction lending,” Brad Williamson, director of the department’s Division of Banks, said in a news release. “The bank’s management was not able to raise sufficient capital to remain viable.”

Williamson called Shoreline “another unfortunate casualty of the extraordinary weakness in the commercial real estate land acquisition and construction lending market.”

The Shoreline, Wash.-based bank’s $100 million in deposits were assumed for an 0.25 percent premium by GBC International Bank. GBC also acquired around $66 million of Shoreline’s $104 million in assets, and the FDIC agreed to share in losses on $49 million of the acquired assets. Assets included $16 million in home loans, $33 million in commercial real estate loans and $29 million in C&D loans.

A week earlier, the Florida Office of Financial Regulation closed the Haven Trust Bank Florida, and the Washington Department of Financial Institutions closed North County Bank. They were also the only two bank failures that day.

The Deposit Insurance Fund is expected to suffer a $41 million setback as a result of Shoreline’s insolvency — the 129th FDIC-insured bank failure this year.

From January through today, 160 mortgage-related closings and failures have been tracked by Mortgage Daily.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam