Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Bank Beat—Florida, Georgia, New Mexico


 

The 13 branches of Peninsula Bank, Englewood, Florida were closed on Friday with Premier American Bank, Miami, Florida, to assume all of the deposits. There are 138 full time employees.

As of March 31, 2010, Peninsula Bank had approximately $644.3 million in total assets and $580.1 million in total deposits.

The FDIC and Premier American Bank entered into a loss-share transaction on $437.6 million of Peninsula Bank's assets.

Equity had dropped from $45.8 million March 31, 2009 to $12.6 million while non-current loans went from $63.3 million to $162.7 million. The bank had lost $223,000 the year period before and $8.2 million the first quarter of this year. Tier 1 risk-based capital ratio -1.83%

The bank had losses in real estate development such as a $3.3 million mortgage loan to a developer for a project west of Boyton Beach in 2006 that by 2008 had not had land development approval, and like many banks in Florida found itself holding mortgages on land that could not be sold for what was owed.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $194.8 million.
www.fdic.gov/news/news/press/2010/pr1014...

The four branches of First National Bank, Savannah, Georgia were closed Friday with the Savannah Bank, National Association, Savannah, Georgia, to assume all of the deposits. There were 32 full-time employees. This is the ninth bank to fail in Georgia this year.

As of March 31, 2010, First National Bank had approximately $252.5 million in total assets and $231.9 million in total deposits. The Savannah Bank, N.A. will pay the FDIC a premium of 0.11 percent to assume all of the deposits of First National Bank. In addition to assuming all of the deposits of the failed bank, The Savannah Bank, N.A. agreed to purchase some of the assets. The FDIC as receiver will retain most of the assets from First National Bank for later disposition.

Bank equity March 31,2009 was $24.9 million and March 31, 2010: $4.87 million with non-current loans going from $23.2 million to $51 million. The bank lost $1.42 million with charge offs of $947,000 ($559,000 in construction and land development, $685,000 in 1-4 multi-family residential property, $55,000 commercial and industrial loans. Tier 1 risk-based capital ratio 2.58% 
 

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $68.9 million.
www.fdic.gov/news/news/press/2010/pr1014...
 

The two High Desert State Bank branches, Albuquerque, New Mexico, with 15 full time employees, were closed Friday with First American Bank, Artesia, New Mexico, to assume all the deposits.

As of March 31, 2010, High Desert State Bank had approximately $80.3 million in total assets and $81.0 million in total deposits. The FDIC and First American Bank entered into a loss-share transaction on $67.6 million of High Desert State Bank's assets. Net equity had gone from $8.4 million March 31, 2009 to $1.89 million March 31, 2010 with noncurrent loans at $17.4 million. The previous period the bank lost $1.9 million and March 31, 2010 $1 million. Tier 1 risk-based capital ratio 2.83%.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million.
www.fdic.gov/news/news/press/2010/pr1014...

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: no position