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Bank Beat--Chicago makes Beck, 43 CA Branches change hands


 


 

The 15 branches of ShoreBank, Chicago, Illinois were closed with Urban Partnership Bank, Chicago, Illinois, a newly-chartered institution, to assume all of the deposits of ShoreBank. It was the 15th bank to fail in the State of Illinois. 118 bank failures in US this year to date.

ShoreBank was able to raise more than $146 million in capital this spring from several big Wall Street institutions. It was unable, however, to secure federal bailout funds it sought from the Treasury Department's Troubled Asset Relief Program.

The FDIC and Urban Partnership Bank entered into a loss-share transaction on $1.41 billion of ShoreBank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $367.7 million.

The bank had gone from 408 full-time employees March 31,2009 to 351 full-time employees March 31,2010, with a tremendous net equity drop from March 31,2009 of $153 million to $23.8 million, non-current loans rising from $183.7 million to $330.68 million same time period; from a profit of $1.6 million to a loss of $17.3 million after a loss of $2.1 million secured by 1-4 multi-family homes, $9.6 million multifamily residential property, and $567,000 secured by non-farm non-residential property. Tier 1 risk-based capital ratio 2.05%.

Glenn Beck of Fox News talked about cronyism as the fall of the bank:
https://www.sbk.com/system/assets/431/logo-shorebank.jpg?1282356979
 

He may have gotten the basic information from the Chicago Daily Observer:
http://www.cdobs.com/archive/featured/crony-capitalism-shores-up-shore-bank/
 

ShoreBank was founded in 1973 with the aid of several dozen institutional backers. The bank has been known for promoting redevelopment, minority business and environmentally responsible lending, and serving low- and moderate-income neighborhoods in Chicago. It was the nation's first community development and environmental bank, branching out from its roots on Chicago's South side to Cleveland, Detroit, the Pacific Northwest and 40 foreign countries.

ShoreBank had indirect ties to a few members of the Obama administration - one of them, presidential adviser Valerie Jarrett, was on the board of a Chicago civic organization led by a ShoreBank director - and powerful supporters, including former top federal banking regulators Ellen Seidman and Eugene Ludwig.

As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits. Urban Partnership Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of ShoreBank. In addition to assuming all of the deposits of the failed bank, Urban Partnership Bank agreed to purchase essentially all of the assets except for the marketable securities and fixed assets.

http://www.fdic.gov/news/news/press/2010/pr10193.html


 

The 16 branches of Butte Community Bank, Chico, California were closed with Rabobank, National Association, El Centro, California, to assume all the deposits. They had 217 full time employees and four branches in Chico, two in Paradise, one each in Gridley, Magilia, Oroville, Colusa, Andersen, Redding, Yuba City, Corning, and Red Bluff. This brings Rabobank up to 109 branches in the state, primarily small communities throughout California, and matches their personality and growth plans.

http://www.rankabank.com/Bank-Offices.asp?UNINUM=16381&offset=40
 

Rabobank Group based in the Netherlands which has been in business for 110 years and has total assets of over $800 billion. The Rabobank website describes Rabobank Group as “one of the largest and safest banks in the world and the only private bank in the world with a triple A credit rating”.

Equity had dropped from $49.5 million March 31, 2009 to $20.5 million while non-current loans in the same period rose from $17.5 million to $65.3 million with a $2.2 million loss following a $1.7 million loss in construction and land developmetn, $383,000 in 1-4 multi-family dwellings, and $453,000 in nonfarm-nonresidential property. Tier 1 risk-based capital ratio 4.34%.

As of June 30, 2010, Butte Community Bank had total assets of $498.8 million and total deposits of $471.3 million. The FDIC and Rabobank, National Association entered into loss-share transactions on $425.4 million of Butte Community Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Butte Community Bank will be $17.4 million.
http://www.fdic.gov/news/news/press/2010/pr10194.html

 


 

The ten branches of Pacific State Bank, Stockton, California were closed with Rabobank, National Association, El Centro, California, to assume all the deposits. As of June 30, 2010, Pacific State Bank had total assets of $312.1 million and total deposits of $278.8. The FDIC and Rabobank, National Association entered into loss-share transactions million of $249.7million of Pacific State Bank's assets.

Brings Rabobank up to 119 branches in California.

Pacific State Bank had 81 full time employees with four branches in Stockton, one each in Angels Camp, Arnold, Lodi, Tracy, Modesto, Groveland, and Hayward, in the San Francisco Bay Area. Net equity had dropped from $34.9 million March 31, 2009 to $12.7 million March 31, 2010 with $23.9 million non-current loans, a loss of $1.5 million Tier 1 risk-based capital ratio 4.91%.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Pacific State Bank, $32.6 million.
http://www.fdic.gov/news/news/press/2010/pr10194.html
 


 

The 14 branches of Los Padres Bank, Solvang, California were closed with Pacific Western Bank, San Diego, California, to assume all of the deposits.

"Our branch network, including the Los Padres branches, will now include 82 branches, with 79 in California extending from San Diego County in the south to San Luis Obispo County in the north. Combined with our three branches in Northern California and the three Los Padres branches in Arizona, we have significant coverage across some of the best banking geography in the country. Pacific Western has always focused on financial strength, relationships and service," said Matt Wagner, CEO of PacWest Bancorp and chairman and CEO of Pacific Western Bank.” We look forward to supporting our new customers as Pacific Western Bank customers."

As of June 30, 2010, Los Padres Bank had approximately $870.4 million in total assets and $770.7 million in total deposits.

Pacific Western Bank will pay the FDIC a premium of 0.45 percent to assume all of the deposits of Los Padres Bank. In addition to assuming all of the deposits of the failed bank, Pacific Western Bank agreed to purchase essentially all of the assets.

The bank had gone from 182 full time employees to 157 full time employees March 31, 2010 with net equity falling from $65.9 million to $29.49 million the same time period with $11.9 million non-current loans as loss of $1.8 million March 31, 2009 to a $400,000 profit March 31, 2010 after a charge off of $1.2 million in real estate ($603,000 in construction and land development, $355,000 in 1-4 family residential property, $256,000 nonfarm nonresidential property. Tier 1 risk-based capital ratio 6.10%

The FDIC and Pacific Western Bank entered into a loss-share transaction on $579.8 million of Los Padres Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.7 million.
http://www.fdic.gov/news/news/press/2010/pr10195.html


 


 

The three branches of Sonoma Valley Bank, Sonoma, California were closed with Westamerica Bank, San Rafael, California, to assume all of the deposits. The bank had two branches in the City of Sonoma and one in Glen Allen. There were 53 full time employees. The problems were quite apparent for the last two years.

As of June 30, 2010, Sonoma Valley Bank had approximately $337.1 million in total assets and $255.5 million in total deposits. Westamerica Bank will pay the FDIC a premium of 2.0 percent to assume all of the deposits of Sonoma Valley Bank. In addition to assuming all of the deposits of the failed bank, Westamerica Bank agreed to purchase essentially all of the assets.

Net equity had almost dropped by one half from March 31, 2009 at $30.9, going to $16 million March 31, 2010 as non-current loans soared from $5.8 million to $30.9 million with the previous time period profit of $741,000 going to a $2.6 million loss with $1.9 million charge off in construction and land development, and $300,000 loss in nonfarm nonresidential property, as well as $366,000 loss in commercial loans. Tier 1 risk-based capital ratio 4.15%.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.1 million
http://www.fdic.gov/news/news/press/2010/pr10196.html

 


 

The six branches of Independent National Bank, Ocala, Florida were closed with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all the deposits. They had 59 full-time employees.

As of June 30, 2010, Independent National Bank had total assets of $156.2 million and total deposits of $141.9 million. Net equity for the bank dropped from $15.5 million to $3.9 million March 31, 2010. Non-current loans had risen in the same year time period from $7.1 million to $22 million. The bank the previous March 31, 2009 lost $989,000 and March 31, 2010 lost $2.7 million; charge off of$464,000 in construction and land development,$365,000 in 1-4 multi-family residential, $485 in nonfarm nonresidential property. Tier 1 risk-based capital ratio 3.29%
http://www.fdic.gov/news/news/press/2010/pr10191.html

 


 

Imperial Savings and Loan Association, Martinsville, Virginia, was closed with River Community Bank, National Association, Martinsville, Virginia, to assume all of the deposits. Established January 1, 1929 the bank had six full time employees. March 31, 2009 the bank had a negative $63,000 equity and March 31, 2010 a minus $554,000 equity, with $322,000 non-current loans and $159,000 loss March 31, 2010. Tier 1 risk-based capital ratio 3.68%.
 

As of June 30, 2010, Imperial Savings and Loan Association had approximately $9.4 million in total assets and $10.1 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.5 million.
http://www.fdic.gov/news/news/press/2010/pr10192.html

 


 

Community National Bank, Bartow, Florida was closed with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all the deposits. This was a small bank with 14 full time employees. Net equity had dropped from $8.1 million March 31, 2009 to $1.9 million March 32, 2010 with $7 million in non-current loans, and a loss of $2.1 million. There was almost a $1 million charge off in real estate, $101,000 in construction and land development,

$806,000 in 1-4 multi-family residential. Tier 1 risk-based capital ratio 3.94%.

As of June 30, 2010, Community National Bank at Bartow had total assets of $67.9 million The FDIC and CenterState Bank of Florida, N.A. entered into loss-share transactions on $51.9 million of Community National Bank at Bartow's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Community National Bank at Bartow will be $10.3 million. The FDIC and CenterState Bank of Florida, N.A. entered into loss-share transactions on $119.7 million of Independent National Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Independent National Bank, $23.2 million.
http://www.fdic.gov/news/news/press/2010/pr10191.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



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