By Aarti Kanjani and Robert Clark, SNL Financial
Regulators closed no banks Friday, March 22, leaving the year's total number of failures at four. In 2012, regulators had closed 15 banks through March 23.
As of March 15, the four bank failures thus far in 2013 did not involve a loss-share agreement. In 2012, the FDIC entered loss-share agreements with the buyers of 20 of the 51 closed banks. In 2011, the FDIC entered loss-share agreements with the buyers of 58 of the 92 closed banks.
The median cost to the deposit insurance fund at the time of announcement as a percentage of the failed banks' assets was 22% in 2013, 21% in 2012 and 23% in 2011.
LaGrange, Ga.-based Frontier Bank (258.8 million)
The bank was established in 1946 and had nine branches. The FDIC issued Frontier Bank a consent order on Feb. 15, 2012. Four months later, The Federal Reserve Bank of Atlanta entered into a written agreement with the bank's parent, Frontier National Corp. From 2009 to 2012, the bank lost $31.4 million. At the end of 2012, its Tier 1 ratio had fallen to 0.65%.
It's Alabama, Not Georgia Bank Failure
Chicago-based Covenant Bank ($58.4 million)
The bank was established in 1977 and had its sole branch in Chicago. n November 2012, Covenant Bank disclosed the need for an immediate capital infusion. Also that month, the bank was issued a prompt corrective action directive by the FDIC. It had been issued a consent order by the FDIC in June 2011. As of Dec. 31, 2012, the bank's Tier 1 ratio was 2.19%, and its Texas ratio was 397.27%.
African-American Religious Bank Fails in Chicago
Andover, Minn.-based 1st Regents Bank ($49.6 million)
The bank was established in 2001 and had its sole branch in Minnesota. The FDIC issued the bank a consent order in March 2010. As of Sept. 30, 2012, its equity capital fell to $924,000 and its Texas ratio was 612.51%.
Mortgage Bubble Burst Takes Another Bank Down
University Place, Wash.-based Westside Community Bank ($91.9 million)
Westside Community operated two branches in the Tacoma, Wash., area. The bank had previously agreed to sell the company to a group of investors for $5.7 million in August 2012. The FDIC issued a prompt corrective action directive to Westside Community in June 2012. As of Sept. 30, 2012, 32.50% of the bank's assets were nonperforming.
Bank in Washington State First to Fail in 2012
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.