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Bank Failure In Boise, Idaho---New Home Construction/Commercial Loans

The six branches and two mortgage offices of Syringa Bank, Boise Idaho, were closed with Sunwest Bank, Irvine, California, to assume all of the deposits. Syringa was established February 24, 1997 and had 60 full time employees as of September 31, 2013. They had two offices in Boise and one office each at Eagle, Lewiston, Meridian, and Middleton. In 2007, the bank had 97 full time employees.

It is the second state-chartered Idaho bank to close since 1986. First Bank of Idaho, a federally regulated savings bank in Ketchum, was closed in 2009.

As of December 31, 2013: Tier 1 risk-based capital ratio 2.57%

Syringa Bancorp shares in 2007 were $14 a share, when they had a high equity of $41.7 million. Friday the shares were trading at $2 cents a share, then the FDIC closed the bank.

The bank in 2010 was put under regulatory order after it lost $26.9 million in 2009, following two years of high non-current loans, $23.6 million in 2008 and $14.6 million in 2009.

"Syringa Bank put forward two plans in 2011 and 2012 to boost its capital reserves to meet concerns of state and federal regulators who ordered improvements in September 2010. The regulators rejected both plans...Syringa raised $10.7 million from investors a year ago, but that money cannot flow into the bank as capital until Syringa meets a series of requirements, said Scott Gibson, bank president and CEO and a member of the boards of the bank and its holding company. He declined to discuss the requirements."
www.loansafe.org/boise-based-syringa-ban...-money

2012 the bank was again told to improve in strong language, but at year the net equity went down to $5.7 million from its high of $41.7 in 2007. The bank charged off $1 million and while non-current loans were down to $4.7 million, net profit was again off, this time $2.5 million.

Certainly the statistics below indicate both the construction/land
charge offs and none current loans

Single-family new house construction building permits:

2006: 588 buildings, average cost: $242,700
2007: 426 buildings, average cost: $209,000
2008: 183 buildings, average cost: $245,800
2009: 177 buildings, average cost: $149,500
2010: 352 buildings, average cost: $177,700
2011: 359 buildings, average cost: $223,600
2012: 580 buildings, average cost: $218,400

www.city-data.com/city/Boise-City-Idaho.html

www.city-data.com/city/Boise-City-Idaho.html

Male Employment
(Boise Purple/Idaho Green)

www.city-data.com/city/Boise-City-Idaho.html

Female Employment
(Boise Purple/Idaho Green)

www.city-data.com/city/Boise-City-Idaho.html

(in millions, unless otherwise)

Net Equity
2006 $19.8
2007 $41.7
2008 $34.1
2009 $15.9
2010 $13.4
2011 $8.3
2012 $5.7
2013 $3.1

Profit
2006 $1.1
2007 $612,000
2008 -$7.1
2009 -$26.9
2010 -$2.8
2011 -$5.3
2012 -$2.5
2013 -$2.4

Non-Current Loans
2006 $348,000
2007 $3.2
2008 $23.6
2009 $14.6
2010 $8.8
2011 $7.5
2012 $4.7
9/31 $4.3

Charge Offs
2006 $283,000 ($302,000 commercial/industrial, -$27,000 construction/land)
2007 $266,000 ($224,000 commercial/ind., $44,000 individ., -$2,000 const.)
2008 $6.2 ($1.0 1-4 family, $962,000 commercial/ind., $3.8 construction/ land, $962,000 commercial/ind. $281,000 nonfarm/nonres., $245,000 individ.)
2009 $23.9 ( $15.5 construct/land, $5.4 commercial/ind., $1.9 nonfarm/nonres., $878,000 1-4 family, $260,000 individual.)
2010 $5.8 ($3.6 construct/land, $1.0 commercial/ind., $$642,000 nonfarm/nonres., $280,000 individual, $220,000 1-4 family
2011 $3.6 ($1.2 commercial/ind., $956,000 nonfarm/nonres., $866,000 1-4 family, $122,000 individual)
2012 $1.0 ($640,000 construct/land, $357,000 commercial/industrial, $184,000 nonfarm/nonres.,$38,000 individual) Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.
2013 $495,000 ( $265,000 commercial/industrial, $127,000 1-4 family, $40,000 nonfarm/nonres., $37,000 individuals).

As of September 30, 2013, Syringa Bank had approximately $153.4 million in total assets and $145.1 million in total deposits. Sunwest Bank will pay the FDIC a premium of 0.75 percent to assume all of the deposits of Syringa Bank. In addition to assuming all of the deposits of the Syringa Bank, Sunwest Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.5 million

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

Leasing News Bank Beat:
www.leasingnews.org/Conscious-Top%20Stor....htm

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