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Bank Beat---Chicago area and Vegas Bank Failures


 

Illinois last year was the third state with the highest bank failures, following Georgia and Florida. The trend continues in these three states. The list from the FDIC of troubled banks rose to 884, the highest number since 1993, at the height of the savings-and-loan crisis. The trend continues in these smaller banks with serious problems in construction and land development as well as real estate investments with larger banks taking over deposits and branches, growing to compete in a market against the major national banks.
 


 

Last week, on Friday, the two branches of Western Springs National Bank and Trust, Western Springs, Illinois, founded January 1, 1916 were closed with Heartland Bank and Trust Co, Bloomington, Illinois, assuming the deposits. They had 35 full time employees and had opened their second branch August 16, 1999 and were serving the Chicago area.

Bank equity had take a serious drop from $15.7 million 2009 to $3.4 million in 2010, following a loss of $3 million the previous year to $12.2 million end of 2010 with over $30 million in non-current loans and charge offs of over $3 million in construction and land development, $2.9 million in loans to individuals, $1.25 million in non-farm, non-residential property, $928,000 in commercial and industrial loans, $184,000 credit cards. Tier 1 risk-based capital ratio: 2.17%

The FDIC and Heartland Bank and Trust Company entered into a loss-share transaction on $100.8 million of Western Springs National Bank and Trust's commercial loans.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.0 million.
http://www.fdic.gov/news/news/press/2011/pr11064.html



 

The two branches of Nevada Commerce Bank, Las Vegas, Nevada, were closed with City National Corp.'s (NYSE:CYN), Beverly Hills, California, assuming all deposits. Formed March 15, 2000, they had 32 full time employees. City National has 15 offices in Nevada, this is number 11 in Las Vegas. They have 69 branches in California and two in New York, according to FDIC records. In addition to paying a premium of 0.71 percent to assume all of the deposits of the failed bank, City National Bank agreed to purchase essentially all of the failed bank's assets.

They had $8.5 million net equity end of year 2009 and $3.4 million end of 2010. The small Las Vegas bank had lost $6.6 million in 2009 and $5.4 million in 2010 with $10.1 million in non-current loans and charge offs of $2 million in nonfarm nonresidential property, $1.8 million in construction and loan development, $130,000 commercial and industrial loans. Tier 1 risk-based capital ratio: 3.21%

"Nevada Commerce, which opened in 2000, has been fighting a losing battle as the recession continued relentlessly and loan losses mounted....The bank had 40 percent of its loans in construction and land, plus another 35 percent in commercial real estate loans at the end of 2008 when the recession tightened its chokehold on Southern Nevada and sent real estate values into free fall."
Full story here: www.lvrj.com/business/nevada-commerce-ba...
 

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.9 million.
www.fdic.gov/news/news/press/2011/pr1106...
 

Tracking Bank Failures Map:
http://graphicsweb.wsj.com/documents/Failed-US-Banks.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