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15 Casualties in Deadly Week

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In addition to one net branch, two wholesale lending operations and two credit unions that were closed down last week, nine banks failed on Friday.

The nine banks were all subsidiaries of Oak Park, Ill.-based FBOP Corp., according to an announcement from the Federal Deposit Insurance Corporation — which was named receiver of all of the failed firms. FBOP, though, remains open.

Six of the institutions were seized by the Office of the Comptroller of the Currency. Those firms were California National Bank in Los Angeles; Citizens National Bank in Teague, Texas; Pacific National Bank in San Francisco; Park National Bank & Trust in Chicago; and San Diego National Bank in San Diego.

The OCC noted that the failures of Citizens National and Park National were the result of cross guaranties on the other failed institutions.

The other three banks were Bank USA, N.A., in Phoenix; Community Bank of Lemont in Lemont, Ill., and North Houston Bank in Houston.

 

Failed Bank

Date Founded # of Employees Deposits
as of June 30
Assets
as of June 30
Residential Loans
as of June 30
Commercial Mortgages
as of June 30
Construction and Land Development Loans
as of June 30
Bank USA na na na $185 million na na na
California National Jan. 2, 1998 726 $5.614 billion $7.065 billion $0.710 billion $2.249 billion $1.863 billion
Citizens National June 18, 1984 20 $0.081 billion $0.106 billion $0.009 billion $0.063 billion $0.007 billion
Community Bank of Lemont na na na na na na na
North Houston Bank May 15, 1963 62 $0.272 billion $0.315 billion $0.005 billion $0.118 billion $0.129 billion
Madisonville State Bank Feb. 26, 1993 40 $0.194 billion $0.230 billion $0.010 billion $0.126 billion $0.086 billion
San Diego National Nov. 12, 1981 376 $2.861 billion $3.396 billion $0.304 billion $1.224 billion $0.813 billion
Pacific National na na na $2.1 billion na na na
Park National May 7, 1883 593 $3.453 billion $4.821 billion $0.563 billion $1.979 billion $0.934 billion
TOTAL
(as of Sep. 30)
na na $15.4 billion $19.4 billion na na na

U.S. Bank, N.A., agreed to assume the deposits of all nine failed institutions and acquire “essentially all” of their assets from the FDIC, which agreed to share in losses on $14.4 billion of the assets. The FDIC expects to lose $2.5 billion from the collective failures of the nine banks.

The OCC issued a cease-and-desist order against California National in May and a civil money penalty against it last year. In August, the OCC issued a cease-and-desist order against San Diego National. Pacific National faced an OCC cease-and-desist orders in August and October as did Park National in August.

The FDIC issued a cease-and-desist order against Community Bank of Lemont in February.

So far during 2009, 115 FDIC-insured banks have failed. Almost 8,200 FDIC-insured institutions remain in business.

Another financial institution to close last week was Second Baptist Church Credit Union, which was seized Thursday by the California Department of Financial Institutions, according to the National Credit Union Administration. The Los Angeles credit union’s 340 members will now be served by Prosperity Federal Credit Union.

The NCUA also reported that it seized control of operations at First Delta Federal Credit Union in Marks, Miss. The $5 million institution, which has 5,500 members, will continue to operate under the control of the NCUA.

The Mortgage Lender Implode-O-Meter recently reported that the following mortgage operations were shut down.

Company Type Date Reported # of employees Originations
AME Financial Corp. wholesale Oct. 30 135 $35 million/month
Envision Lending Group retail Oct. 29 1,100 na
The Lending Co. wholesale Oct. 27 230 (though might be retail and not necessarily laid off) $20 million/month
Stockton Turner & Co. net branch Oct. 29 500 $6.9 million/month

From Jan. 1 through Oct. 30, MortgageDaily.com has tracked the closing of 190 mortgage-related operations.

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