5 Failed Banks For June 26, 2009- Quarter Billion Dollar FDIC Loss

Failed Banks:  Community Bank of West Georgia, Neighborhood Community Bank, Horizon Bank, Metro Pacific Bank and Mirae Bank

There were five more failed banks this week on June 26, 2009 as detailed below:

  1. Community Bank of West Georgia, Villa Rica, Georgia
  2. Neighborhood Community Bank, Newnan, Georgia
  3. Horizon Bank, Pine City, Minnesota
  4. MetroPacific Bank, Irvine, California
  5. Mirae Bank, Los Angeles

2009 has now seen a total of 20 more failed banks than occurred for all of 2008.  The latest 5 banking closures by the FDIC brings total banking failures for 2009 to 45 banks.

The FDIC estimates that the four latest banking failures will cost the FDIC Deposit Insurance Fund (DIF) $264.2 million in losses, as follows:

Closure of the two Georgia banks will cost the FDIC an estimated $151.7 million.  Georgia now accounts for 20% of all US banking failures this year.  See related story – More Georgia Banking Failures.

Horizon Bank, Pine City, Minnesota

As receiver, the FDIC entered into an agreement with Stearns Bank, National Association, St Cloud, Minnesota, to assume all of Horizon Bank’s deposits.

As of March 31, 2009, Horizon Bank had total assets of $87.6 million and total deposits of $69.4 million. Stearns Bank also agreed to purchase $84.4 million of Horizon’s assets, subject to a loss sharing agreement with the FDIC.

The FDIC estimates the cost to the Deposit Insurance Fund at $33.5 million.  Horizon is the 43rd banking failure this year and the first in Minnesota.

MetroPacific Bank, Irvine, California

As receiver, the FDIC entered into an agreement with Sunwest Bank, Tustin, California, to assume all of MetroPacific’s deposits.

As of June 8, 2009, MetroPacific had total assets of $80 million and total deposits of $73 million.  Sunwest also agreed to purchase virtually all of MetroPacific’s assets.

The cost of closing MetroPacific to the FDIC was estimated at $29 million.  MetroPacific is the 44th banking failure this year and the fifth in California.

Mirae Bank, Los Angeles

As receiver, the FDIC entered into an agreement with Wilshire State Bank, Los Angeles, California to assume all of the deposits of Mirae Bank.

As of May 29, 2009, Mirae Bank has total assets of $456 million and total deposits of $362 million.  Wilshire also agreed to purchase $449 million of Mirae’s assets, subject to a loss sharing agreement with the FDIC.

The cost of closing Mirae Bank to the FDIC was estimated at $50 million.  Mirae Bank is the 45th banking failure this year and the sixth in California.

Speak Your Mind

*