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Bank Beat---Bank President Found Dead, Georgia takes two hits,

                      including CEO indicted by Feds over TARP money---


 

The distinction of the 39th bank to fail this year falls to the five branches of Community Central Bank, Mount Clemens, Michigan with the mystery of the death of the president unresolved. Historically, Mount Clemens' largest industry was the mineral baths that were scattered throughout the city from 1873 until 1974. Over the years, noted visitors such as film actors Clark Gable and Mae West, athletes Babe Ruth and Jack Dempsey, news magnate William Randolph Hearst, and the Vanderbilt family vacationed in the city for the bath industry. The town has grown to a city with a population of 17,312.

David Widlak, 62 years old, the bank president of this struggling small bank disappeared last fall. In he was found dead with a gunshot wound to the head in a marshy area of Lake St. Clair. Days after his death, depositors withdrew $33 million in deposits, which added to the banks ability to find investors to increase its capital. He had been trying to increase the bank capital to keep it alive.

According to the Detroit News, Widlak's wife and brother claimed it was murder, perhaps by a possible bank investor. According to Widlak's wife, a few days before he disappeared he had called a private investigator about his concerns for his life.

The Macomb Daily reports stories about an arrangement regarding an estate and his involvement, as well as bank worries, as sheriff investors revealed, "In the hours before Mount Clemens banker David Widlak’s life ended, he took time to erase material in his personal iPad, work computer files and the GPS navigational system in his car.

They believe Widlak had taken steps to remove information that otherwise may have shown where he had been and what was on his mind.

“The experts we talked to say it was a sign of someone erasing his life,” said Macomb County Sheriff Mark Hackel. “Something’s not normal there.”

Deleting the information was one of several indicators that led Macomb County authorities to conclude that Widlak likely committed suicide, although investigators are leaving open the possibility of foul play.

“There’s a strong likelihood this was self-inflicted,” the sheriff said at a news conference Monday. “The totality of all of the evidence indicates this may have been self-inflicted.”

Other details released Monday include:

A scrap of paper was found in Widlak’s hand when his body was found in Lake St. Clair, but it fell apart from being in the water for several weeks and no message was legible.
LINK
 

"A second autopsy, commissioned by Widlak’s family, found he died from an “execution style” gunshot wound to the back of the head."
LINK
 

Asked by a reporter if Widlak could have shot himself in the back of the head, the McComb County reporter said possible, but unlikely, and it appears the case has never been resolved.
 


 

Talmer Bank & Trust, Troy, Michigan, formerly known as First Michigan Bank, assumed all of the deposits of Community Central Bank. Founded October 28, 1996, the bank had 87 full time employees with offices in Grosse Pointe Farms, Grosse Pointe Woods, Mount Clemens, Port Huron, and Rochester Hills.

As of December 31, 2010, Community Central Bank had approximately $476.3 million in total assets and $385.4 million in total deposits. Talmer Bank & Trust will pay the FDIC a premium of 0.25 percent to assume all of the deposits of Community Central Bank. The FDIC and Talmer Bank & Trust entered into a loss-share transaction on $362.4 million of Community Central Bank's assets.

Bank equity had dropped from $34.9 million year-end 2009 to $8.6 million year-end 2010 with non-current loans growing from $22.9 million to $40.3 million in the same period of time. The bank had lost $15.9 million year-end 2009 and $26.2 million with charges offs of $13.3 million in nonfarm nonresidential properties, $1.7 million secured 1-4 family residential properties, $389,000 commercial and industrial loans and $278,000 in loans to individuals. Tier 1 risk-based capital ratio 2.37%

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $183.2 million. http://www.fdic.gov/news/news/press/2011/pr11080.html

About David Widlak:
LINK

 


 

The week before last there were no bank failures, but two weeks ago there were six bank failures costing the FDIC insurance $588.1 million and last week five failures costing the FDIC Insurance $643.2 million.

Community Central had cost $183.2 million, but the highest came from the closing of the 12 branches of The Park Avenue Bank, Valdosta, Georgia for $306.1 million.

There were several indictments filed regarding real estate conspiracy including a $3 million loan allegedly support by a $21 million account at another bank that was non-existent but involved a bank officer of the other bank, as well as money laundering, and events similar that closed Omni National Bank in Georgia, as well as the handling of TARP funds, which brought an indictment.

No March 31, 2011 report was available at press time.

The bank was one of two acquired by Bank of the Ozarks, Little Rock, Arkansas, last week the banking operations and branches ( 20 offices from both banks). Their website states they have 100 locations throughout the Southeast (14 in Georgia, bringing the total now to 33 and 120 in the Southeast).

The Park Avenue Bank had gone from 270 full time employees the end of 2009 to 182 full-time employees year-end 2010. Founded originally in 1934 and part of PAB Bankshares August 1, 1956 and joining the FDIC March 1, 1968, there were three offices in Valdosta, two in Bainbridge, and one each in Athens, Cairo, Lake Park, Oakwood, Ocala, McDonough, Ocala, Stockbridge, and one in Florida.

The Park Avenue Bank had total assets of $953.3 million and total deposits of $827.7 million as of December 31, 2010. Te loss-share transaction for The Park Avenue Bank was $514.1 million.

Bank equity had gone from $62 million year-end 2009 to $17 million year-end 2010 with non-current loans at $109.6 million.

Net income was a loss of $49.3 million year-end 2009 and a lost of $43.7 million year-end 2010. 2009 charge offs were $41.2 million with $21.2 million in construction and land development, $1 million farmland, $3 million

1-4 family residential properties and $4.9 million in nonfarm nonresidential properties. 2010 the charges offs were $23.8 million with $13.9 million in construction and land development, $3.5 million farmland, $3.2 million secured by 1-4 family residential properties, $1 million nonfarm nonresidential properties and almost $2 million in commercial and industrial loans. Tier 1 risk-based capital ratio 2.79%.

CEO charged with fraud (6:33):
http://video.foxnews.com/v/4106665/federal-regulators-seize-park-avenue-bank
 

Park Avenue Bank Puts it's Experience to Work for You (1:10)
http://video.google.com/videoplay?docid=-1471538319405680169#

http://www.fdic.gov/news/news/press/2011/pr11079.html


 


 

If these are samples of banks that have are having capital problems, there definitely must be a back log. Small and regional banks seem to be having great difficulties in attracting investors.

The six branches of First National Bank of Central Florida, Winter Park went from a $33.5 million net equity year-end 2009 to a minus $439,000 net equity March 31, 2011 after sustaining a $31 million loss year-end 2010 and a $5.9 million March 31, 2001 with most of the problems following what was happening to other banks in Florida: construction and land development loans.

Premier American Bank, National Association, Miami, Florida, acquired the banking operations, including all the deposits. Since its formation in April 2009, Bond Street has raised approximately $740 million and its wholly-owned subsidiary Premier American has acquired certain of the assets and assumed certain liabilities (including substantially all deposits) of 6 failed banks in Florida from the FDIC. First National Bank of Central Florida was founded in July 15, 1985 and had 74 full time employees with two offices in Orlando, one each in Apopka, Heathrow, Longwood, and Winter Park.

They had some serious loan problems as equity dropped from $33.5 million in year-end 2009 to $5.3 million year-end 2010 to a minus $439,000 net equity March 31, 2011 in FDIC filings.

At year end 2010: Non-current loans at year end were $68.3 million as the bank sustained a $6.3 million loss in 2009 and $31 million loss in 2010 after charges offs of $6.2 million in construction and land development, $2.9 million in nonfarm nonresidential property, $4.1 million in commercial and industrial loans. Tier 1 risk-based capital ratio year-end 2010 was 1.96% and .002489 at March 31, 2011.

The loss-share transaction for First National Bank of Central Florida was $270.0 million.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for First National Bank of Central Florida will be $42.9 million
http://www.fdic.gov/news/news/press/2011/pr11078.html
 

The two branches of Cortez Community Bank, Brooksville, Florida, were closed with again Premier American Bank, National Association, Miami, Florida, acquiring the banking operations, including all the deposits. The bank was founded January 26, 2004 and had 19 full time employees with an office in Brooksville and Springhill.

Community Bank had total assets of $70.9 million and total deposits of $61.4 million. The loss-share transaction for Cortez Community Bank was $51.3 million.

Equity had dropped from $11.5 million year-end 2009 to $3.6 million year-end 2010 carrying a minus $15 million in undivided profits and by March 31, 2011 the equity was rewritten to a minus $460,000 after restating the December 1, 2010 to a minus $5.7 million, according to the most recent filing.
 

Non-current loans at year end were $15.4 million as the bank had lost $5.4 million in 2009 and almost $8 million in 2010 charging off $4 million in construction and land development, $825,000 nonfarm nonresidential properties and $193,000 in commercial and industrial loans. The bank lost $460,000 March 31, 2011.

Year-end Tier 1 risk-based capital ratio 0.1489%

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Cortez Community Bank, $18.6 million.
http://www.fdic.gov/news/news/press/2011/pr11078.html


 


 

The eight branches of First Choice Community Bank, Dallas, Georgia were closed with Bank of the Ozarks, Little Rock, Arkansas, acquired the banking operations. Founded April 9, 2007 the bank had 70 full time employees at 8 offices, two each in Carrolton and Newnan, one in Dallas, Douglasville, Senoia, and Sharpsburg.

This is the third bank in the particular geographic area to fail; First Coweta and Neighborhood Community Bank. A consent order to the bank in 2010 directed the bank to lower its reliance on brokered deposits raised through third-party brokers and to depend on local depositors. The bank was reportedly able to take care of 80% of brokered deposits with replacement by local depositors.

As of December 31, 2010, First Choice Community Bank had total assets of $308.5 million and total deposits of $310.0 million. Bank equity year-end 2009 had gone from $16.1 million to minus $7.6 million year-end 2010. Non-current loans at that period were $79.5 million.

The bank had lost $1.4 million year-end 2009 and $42.4 million year-end 2010, charging off $20.2 million in construction and land development, $765,000 in commercial and industrial loans, $334,0000 in 1-4 family residential properties, and $115,000 in farmland. Tier 1 risk-based capital ratio -2.96%.

March 31,2011 the bank reported a loss of $42.4 million charging off $12.3 million in 1-4 family residential construction loans, $7.9 million in land development loans and $115,0000 in farmland, as well as $788,000 in commercial and industrial loans. Bank equity was a minus $7.58 million. Tier 1 risk-based capital was-2.96%

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for First Choice Community Bank will be $92.4 million
http://www.fdic.gov/news/news/press/2011/pr11079.html
 

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