U.S. Bank Picks Up Another Nine Banks

The FDIC closed 9 banks late last night, with a combined $19.4 billion of assets all of which were owned by one holding company and sold to US Bank in Minnesota. From Robin Sidel, WSJ:

Banking regulators seized nine related community lenders in California, Illinois, Arizona and Texas, representing the collapse of one of the nation’s largest privately held bank holding companies that grew through a string of acquisitions dating back to the savings-and-loan crisis of the 1990s.

The nine small banks represented the holdings of FBOP Corp., based in Oak Park, Ill., and owned by a banker who had plowed into real-estate lending around the country.

#107-#115

• Failed banks: Bank USA, Phoenix AZ; California National Bank, LA CA; San Diego National Bank, SD CA; Pacific National Bank, SF CA; Park National Bank, Chicago IL; Community Bank of Lemont, Lemont IL; North Houston Bank, Houston TX; Madisonville State Bank, Madisonville TX; Citizens National Bank, Teague TX.
• Acquiring bank: US Bank (USB), Minneapolis MN
• Vitals: as of 9/30, $19.4 billion of assets, $15.4 billion of deposits
• DIF damage: $2.5 billion

US Bank has been highly acquisitive during this failure cycle. They also picked up Downey Savings and Loan and PFF Bank and Trust last November. Those two had $12.4 billion and $3.7 billion of assets when they failed.

Comments

[john s. gordon:]

reminds me of the acquisition binge of nationsbank (now calling itself BoA) during the last decade.
> jack

Nov 01 08:49 AM

[Frontrange:]

How is buying distressed assets from the FDIC the same as using highly valued stock to acquire / merge with other banks?

Nov 01 09:28 AM

[ndallasj:]

At last--USB now has a presence in TX! I would like to think that this acquisition would enable USB to expand rapidly in TX as Capital One did when they acquired Hibernia. However, given the state of economy and USB's avowed strategy of increasing market share in communities where they already have a presence, I fear this won't happen.

Nov 02 08:32 AM