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Arizona And Tennessee Bank Close

 

The 15 branches of Community South Bank, Parsons, Tennessee, are closing and CB&S Bank, Inc. Russellville, Alabama, is assuming all of the deposits.

Founded August 31, 1968 as Citizens State Bank , in 2000 the bank was merged with two other local banks: Bank of Adamsville and Lewis County Bank, changing its name to Community South Bank. As of March 31, 2013, the bank had 123 full time employees at their two offices each in Hohenwalk, Knoxville, Parsons, Savannah, and single offices in Adamsville, Counce, Lexington, and Scotts Hill. In 2007, the bank had 295 full time employees.

June 30, 2013: Tier 1 risk based capital ratio 0.0067

18 March 2011 FDIC issues prompt action directive.

Perhaps the areas has a small population, over banked, and hit hard by the recession.

"In Parsons, about 49% of adults are married. A relatively large number of people in Parsons live by themselves…

"Approximately 12% of Parsons is non-white. Parsons boasts a diverse population for Tennessee, with several racial groups well-represented among the population.

"There is an unusually large share of women in Parsons. The city benefits from the stability of its large group of senior citizens.

About 62% of housing units in Parsons are owner-occupied. Many residents rent one-bedroom or studio apartments. Typical rents in Parsons are affordable, at least compared to other cities in the state...
www.citytowninfo.com/places/tennessee/parsons

Single-family new house construction building permits:
1997: 1 building, cost: $100,000
1998: 3 buildings, average cost: $128,300
1999: 1 building, cost: $39,700
2000: 2 buildings, average cost: $69,000
2001: 7 buildings, average cost: $52,100
2002: 5 buildings, average cost: $56,500
2003: 5 buildings, average cost: $56,500
2004: 8 buildings, average cost: $55,600
2005: 2 buildings, average cost: $69,000
2006: 3 buildings, average cost: $60,600
2007: 2 buildings, average cost: $106,400
2008: 2 buildings, average cost: $60,000
2009: 0 buildings
2010: 0 buildings
2011: 0 buildings
2012: 0 buildings
www.city-data.com/city/Parsons-Tennessee.html

(in millions, unless otherwise)

Net Equity
2006 $37.1
2007 $45.2
2008 $46.9
2009 $50.4
2010 $21.3
2011 $18.3
2012 $11.0
6/30 $5.1

Profit
2006 $9.5
2007 $6.7
2008 $4.4
2009 -$774,000
2010 -$35.6
2011 -$2.8
2012 -$7.3
6/30 -$5.9

Non-Current Loans
2006 $6.1
2007 $17.5
2008 $23.5
2009 $45.8
2010 $80.1
2011 $71.3
2012 $51.5
3/31 $57.8

Charge Offs
2006 $263,000 ( $144,000 1-4 family ,$75,000 commercial/ind., $32,000nonfarm/nonres.)
2007 $1.1 ($738,000 nonfarm/nonres.,$125,000 commercial, $120,000 1-4 family, $84,000 individuals, $26,000 other)
2008 $3.6 ($2.1 nonfarm/nonres.,$896,000 1-4 family, $281,000 commercial, $272,000 construction/land, $44,00 individuals
2009 $5.1 ( $4.7 nonfarm/nonres., $131,000 commercial/ind. $269,000 1-4 family, $12,000 individuals, -$55,000 other loans
2010 $5.7 ( $4.8 nonfarm/nonres.,$568,000 construction/land,$293,000 1-4 family, $50,000 commercial/industrial, $27,000 individuals)
2011 $11.3 ($4.6 commercial/industrial, $3.8 nonfarm/nonres., $1.6 construction, land,$1.2 1-4 family, $43,000 individuals)
2012 $12.0 ($5.6 commercial/industrial, $4.9 nonfarm/nonres.,$775,000 1-4family, $633,000 construction land, -$2,000 automobiles)
6/30 $4.5 ( $4.1 nonfarm/nonres.,$264,000 1-4 family $117,000 constr./land, $9,000 individuals

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.

As of June 30, 2013, Community South Bank had approximately $386.9 million in total assets and $377.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, CB&S Bank, Inc. agreed to purchase approximately $121.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $72.5 million.
www.fdic.gov/news/news/press/2013/pr13072.html

The six branches of Sunrise Bank of Arizona, Phoenix, were closed with First Fidelity Bank, National Association, Oklahoma City, Oklahoma, to assume all the deposits. Founded May 20, 1998 as Camelback Community Bank, the bank had 69 full time employees. December 14, 2009 as Sunrise Bank of Arizona acquired offices in Mesa, Glendale, Phoenix, and Scottsdale and had 113 full time employees are year end. The Nogales office was acquired January 24, 2011.

June 30, 2013: Tier 1 risk-based capital ratio 0.0304

As reported in previous Bank Beat reports, this is one of Capitol Bancorp. problem banks. Since May 10, 2013, four other banks owned by Capitol Bancorp have collapsed - Pisgah Community Bank, Sunrise Bank (Georgia), Central Arizona Bank, and 1st Commerce Bank. In 2012, Capital Bancorp had 11 affiliated banks in Arizona.

The funny numbers starting in 2009 below reflect the merger of Mesa Bank and Arrowhead Community Bank, two of Capital Bancorp's banks, under the Sunrise Bank of Arizona.

(in millions, unless otherwise)

Net Equity
2006 $8.6
2007 $9.1
2008 $9.1
2009 $20.9
2010 $2.6
2011 $6.4
2012 $4.7
6/30 $4.8

Profit
2006 $1.1
2007 $992,000
2008 $780,000
2009 -$48.4
2010 -$41.6
2011 -$14.4
2012 -$3.5
6/30 -$287,000

Non-Current Loans
2006 $46,000
2007 $450,000
2008 $2.0
2009 $32.5
2010 $29.9
2011 $24.0
2012 $17.1
3/31 $24.0

Charge Offs
2006 -$11,000 ( -$11,000 commercial/industrial)
2007 -$32,000 ( -$32,000 commercial/industrial)
2008 $69,000 ( $87,000 construction/land, $-18,000 commercial/industrial)
2009 $22.2 ($7.1 const./land/$2.8 commercial/ind.,$2.4 nonfarm/nonres,$2.1 multifamily, $545,000 farmland, $117,000 individuals)
2010 $16.6 ($6.9 nonfarm/nonres,$4.0 1-4 family, $1.3 commercial/independent.,$785,000 multifamily, $602,000 farmland, $151,000 individual)
2011 $15.1 ( $5.7 const./land, $4.5 nonfarm/nonres, $3.4 1-4 family, $1.1 commercial/ind., $220,000 individual. -$19,000 farmland)
2012 $6.4 ($2.9 nonfarm/nonres.,$1.5 1-4 family, $1.2 construction/land,$639,000, commercial, $33,000 individual, -$1,000 automobile).
6/30 $1.4 ($717,000 nonfarm/nonres.,$462,000 commercial/industrial, $126,000 1-4 family, $96,000 individuals)

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.

As of June 30, 2013, Sunrise Bank of Arizona had approximately $202.2 million in total assets and $196.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Fidelity Bank, National Association agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.0 million.

www.fdic.gov/news/news/press/2013/pr13073.html

List of Bank Failures:
http://www.fdic.gov/bank/individual/failed/banklist.html

Bank Beat:


http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm

 

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.