(The protestors against bank fees are just angry, and much of it is caused by banks that failed, such as Washington Mutual, who advertised on television "We aren't bankers." They gave away free checking accounts, overdraft charges, ATM fees, you name it, as they were raking it in real estate mortgages from people who should never have qualified. And now that the community banks have problems with real estate loans, what products are they left to stay in business? At one time they charged for checking, for overdraft, for services they offered, and to regulate that they can't charge for services rendered is un-American. The protestors should spend their energy looking for a job. Editor)
The 27 branches of Sun Security Bank, Ellington, Missouri were closed with Great Southern Bank, Springfield, Missouri, to assume all of the deposits. The bank was formed January 19, 1970 and when closed had 119 full time employees, compared to 2006 with 166 full time employees. By the dates of the opening of the offices, the bank started to expand in 2004 with ten new branches, five in 2005, and one in 2006. June 30, 2011 Tier 1 risk-based capital ratio: 2.36%
The bank went from a $10 million profit in 2006 to losing $17.5 million in 2008, all primarily from construction and land development loan charges offs, primarily from a couple of local developers.
Elmer Austermann, Jr.
Chairman, Sun Security
According to the St. Louis bizjournals.com, "Elmer Austermann, Jr., Sun’s chairman, controlled more than 90 percent of Sun Security’s shares (he lost a lot of money. editor). Shaun Hayes, a shareholder and president of the bank from 2008 to 2011, is facing a raft of lawsuits involving Sun and other banks. He is a defendant in 12 civil suits filed in St. Louis County Circuit Court this year. Another bank where Hayes has been a shareholder, Excel Bank in Sedalia, Mo., is one of those suing him.
"Recent troubles at Sun that have become public include two St. Charles County developers who pleaded guilty to bank fraud charges related to a development in St. Charles County. Thomas Colvin and Kristaq Gjordeni obtained a $5.1 million loan from Sun to purchase and develop 45 acres into 33 single-family lots at The Bluffs at Green Chutes. They began experiencing financial difficulties with their other projects and started using the Bluffs project loan to pay on unrelated loans and personal expenses, the U.S. attorney’s office said.
"In addition, BancorpSouth of Tupelo, Miss., has filed two lawsuits against Hayes, one seeking just shy of $1 million and another seeking $1.2 million."
(in millions, unless otherwise)
Net Equity | |
| 2006 | $52.9 |
| 2007 | $48.8 |
| 2008 | $30.9 |
| 2009 | $20.9 |
| 2010 | $21.4 |
| 6/31 | $9.2 |
Profit | |
| 2006 | $10 |
| 2007 | $458,000 |
| 2008 | -$17.5 |
| 2009 | -$13.5 |
| 2010 | $611,000 |
| 6/31 | -$15.1 |
Non-Current Loans | |
| 2006 | $915,000 |
| 2007 | $17 |
| 2008 | $45.6 |
| 2009 | $25.5 |
| 2010 | $33.5 |
| 6/31 | $31.5 |
Charge Offs
2006 $229,000 ($243,000 construction andland development, recovered $19,000 C&I, consumer)
2007 $9.3 ($8.1 construction and land development, $1 nonfarm nonresidential, $8,000 consumer)
2008 $9.8 ($6.4 C&L, $2.2 nonfarm non res., $1.1 commercial and industrial, $9,000 consumer)
2009 $7.8 ($6.1 C&L, $755,000 nonfarm, $400,000 1-4 family, $300,000 farmland, $186,000 C&I)
2010 $4.0 ($2.9 C&L, $659,000 C&I, $384,000 1-4 family residential, recov. $54,000 nonfarm)
6/31 $9.1 ($7.2 C&L, $1.4 C&I, $427,000 1-4 family residential)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
As of June 30, 2011, Sun Security Bank had approximately $355.9 million in total assets and $290.4 million in total deposits. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase essentially all of the assets.
The FDIC and Great Southern Bank entered into a loss-share transaction on $351.9 million of Sun Security Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $118.3 million.
www.fdic.gov/news/news/press/2011/pr1115...
The six branches of The RiverBank, Wyoming, Minnesota were closed with Central Bank, Stillwater, Minnesota, to assume all of the deposits. The bank had 108 full time employees March 30, 2011 compared to 19 full time employees in 2006 and 115 full time employees in 2007 as this was the date Chisago State Bank, founded March 9, 1908 and the Bank of Osceola, founded in 1894 merged to become RiverBank. In 2007 opened four offices, one in in St. Crois, St. Croix Falls and Hudson. June 30, 2011 the bank had a Tier 1 risk-based capital ratio: 1.71%.
In 2009, the RiverBank received a cease-and-desist order from regulators, who were concerned about the high concentration of land and land-development loans the bank had made in outlying areas of the Twin Cities, as well as “operating with a board of directors that has failed to provide adequate supervision over management, operating with an inadequate level of capital, operating with an inadequate allowance for loans and lease losses, engaging in hazardous lending and lax collection practices and operating with inadequate policies to monitor and control asset growth.”
A history of the bank is still on line at press time:
www.theriverbank.com/aboutus/2-1.htm
Still on line is an independent site showing the bank owned real estate:
www.mw-property.com/
(in millions, unless otherwise)
Net Equity | |
| 2006 | $12.4 |
| 2007 | $43.5 |
| 2008 | $42.3 |
| 2009 | $29.4 |
| 2010 | $14.9 |
| 6/31 | $7.0 |
Profit | |
| 2006 | $1.0 |
| 2007 | $7.3 |
| 2008 | $539,000 |
| 2009 | -$19.8 |
| 2010 | -$14.8 |
| 6/31 | -$8.1 |
Non-Current Loans | |
| 2006 | $544,000 |
| 2007 | $20 |
| 2008 | $31.6 |
| 2009 | $34.3 |
| 2010 | $35.7 |
| 6/31 | $41.9 |
Charge Offs
2006 $134,000 ($130,000 nonfarm non residential, $4,000 consumer loans)
2007 $714,000 ($219,000 commercial & industrial, $202,000 1-4 family, $105,000 indiv., $98,000
consumer)
2008 $4.0 ($2.6 C&L, $763,000 nonfarm, nonres., $362,000 1-4 family, $145,000 consumers)
2009 $16.0 ($8 C&L, $4.6 commercial/industrial, $1.3 1-4 fam., $903,000 nonfarm, $789,000 multifamily, $378,000 indiv.,)
2010 $13.6 ($9.0 C&L, $2.2 commercial/industrial, $801,000 nonfarm, $262,000 individual.
6/31 $1.4 ($479,000 1-4 family, $446,000 nonfarm-non res., $206,000 commercial/industrial)
Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
As of June 30, 2011, The RiverBank had approximately $417.4 million in total assets and $379.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets.
The FDIC and Central Bank entered into a loss-share transaction on $339.3 million of The RiverBank's assets.
Central Bank will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $71.4 million.
www.fdic.gov/news/news/press/2011/pr1115...
List of Bank Failures:
www.fdic.gov/bank/individual/failed/bank...