How I learned to love the economic crisis: 2010 edition

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

That would appear so. Seven more this week...

Indeed

First Arizona Savings, A FSB	Scottsdale	AZ	32582	October 22, 2010	October 22, 2010
Hillcrest Bank	Overland Park	KS	22173	October 22, 2010	October 22, 2010
First Suburban National Bank	Maywood	IL	16089	October 22, 2010	October 22, 2010
The First National Bank of Barnesville	Barnesville	GA	2119	October 22, 2010	October 22, 2010
The Gordon Bank	Gordon	GA	33904	October 22, 2010	October 22, 2010
Progress Bank of Florida	Tampa	FL	32251	October 22, 2010	October 22, 2010
First Bank of Jacksonville	Jacksonville	FL	27573	October 22, 2010	October 22, 2010

139 vs. 106

[GRG55]

Re: How I learned to love the economic crisis: 2010 edition

Indeed



139 vs. 106

Even "better" only one more and 2010 will match full year 2009 at 140 closures. From Calculated Risk:

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

The latest batch:

First Vietnamese American Bank In Vietnamese	Westminster	CA	57885	Grandpoint Bank	November 5, 2010	November 5, 2010
Pierce Commercial Bank	Tacoma	WA	34411	Heritage Bank	November 5, 2010	November 5, 2010
Western Commercial Bank	Woodland Hills	CA	58087	First California Bank	November 5, 2010	November 5, 2010
K Bank	Randallstown	MD	31263	Manufacturers and Traders Trust Company	November 5, 2010	November 5, 2010

Indeed - a slowdown vs. last year's activity.

Now 143 in 2010 vs. 120 in 2009

So far, another prescient call by mmreilly...

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

The FDIC just added acquiring banks to the failed banks list - interesting to see how up and coming powerhouses like the Bank of the Ozarks are cleaning up after the failed bank trash...

First Banking Center	Burlington	WI	5287	First Michigan Bank	November 19, 2010	November 19, 2010
Allegiance Bank of North America	Bala Cynwyd	PA	35078	VIST Bank	November 19, 2010	November 19, 2010
Gulf State Community Bank	Carrabelle	FL	20340	Centennial Bank	November 19, 2010	November 19, 2010

146 vs. 121

On the thread of the upcoming TBTF (?) banks - top acquirers of 2010:

Centennial Bank

Gulf State Community Bank	FL	Centennial Bank	19-Nov-10
Wakulla Bank	FL	Centennial Bank	1-Oct-10
Coastal Community Bank	FL	Centennial Bank	30-Jul-10
Bayside Savings Bank	FL	Centennial Bank	30-Jul-10
Key West Bank	FL	Centennial Bank	26-Mar-10
Old Southern Bank	FL	Centennial Bank	12-Mar-10

Community & Southern Bank

The Peoples Bank	GA	Community & Southern Bank	17-Sep-10
First Commerce Community Bank	GA	Community & Southern Bank	17-Sep-10
Bank of Ellijay	GA	Community & Southern Bank	17-Sep-10
Appalachian Community Bank	GA	Community & Southern Bank	19-Mar-10
First National Bank of Georgia	GA	Community and Southern Bank	29-Jan-10

Ameris Bank

Darby Bank & Trust Co.	GA	Ameris Bank	12-Nov-10
Tifton Banking Company	GA	Ameris Bank	12-Nov-10
First Bank of Jacksonville	FL	Ameris Bank	22-Oct-10
Satilla Community Bank	GA	Ameris Bank	14-May-10

Bank of the Ozarks

Horizon Bank	FL	Bank of the Ozarks	10-Sep-10
Woodlands Bank	SC	Bank of the Ozarks	16-Jul-10
Unity National Bank	GA	Bank of the Ozarks	26-Mar-10

NAFH National Bank

Turnberry Bank	FL	NAFH National Bank	16-Jul-10
Metro Bank of Dade County	FL	NAFH National Bank	16-Jul-10
First National Bank of the South	SC	NAFH National Bank	16-Jul-10

Premier Bank

Peninsula Bank	FL	Premier American Bank, N.A.	25-Jun-10
Florida Community Bank	FL	Premier American Bank, N.A.	29-Jan-10
Premier American Bank	FL	Premier American Bank, N.A.	22-Jan-10

TD Bank

Riverside National Bank of Florida	FL	TD Bank, N.A.	16-Apr-10
AmericanFirst Bank	FL	TD Bank, N.A.	16-Apr-10
First Federal Bank of North Florida	FL	TD Bank, N.A.	16-Apr-10

Umpqua Bank

Nevada Security Bank	NV	Umpqua Bank	18-Jun-10
Rainier Pacific Bank	WA	Umpqua Bank	26-Feb-10
Evergreen Bank	WA	Umpqua Bank	22-Jan-10

24 banks were acquired by these 8, plus another 8 "No Acquirer"

[mmr]

Re: How I learned to love the economic crisis: 2010 edition

A few of these buyers (Premier, NAFH, and Community & Southern) are backed by private equity groups who will just keep buying until they fully leverage their initial capital investment. NAFH has raised about $900 MM in capital, which would allow them to buy a top 50 bank ($10B in assets or so), or to do another 10+ deals like the ones they've just done.

Other than TD, none of these buyers fit into the TBTF category - in fact, I wouldn't be shocked if one of the smaller failed bank buyers from earlier in the cycle ends up failing itself at some point. Some of these buyers just didn't have the infrastructure in place to deal with their own credit problems, much less integrating other banks with problems of their own.

Also, if you click on the links for some of the older deals listed on the FDIC website, you'll notice that they've begun to list the losing bids (other than the second-place bid, for whatever reason). For example, for Colonial (one of the bigger failures last year), you can see that TD put in the third place bid.

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

3 more - Happy Turkey Week!

Allegiance Bank of North America Bala Cynwyd PA 35078 VIST Bank November 19, 2010 November 23, 2010
First Banking Center Burlington WI 5287 First Michigan Bank November 19, 2010 November 23, 2010
Gulf State Community Bank Carrabelle FL 20340 Centennial Bank November 19, 2010 November 23, 201

149 in 2010 vs. 121 in 2009

[BK]

Re: How I learned to love the economic crisis: 2010 edition

The really scary aspect of the lastest failures is it seem more and more weak banks are coming into buy the Assets of failed Bank.....I know almost nothing about Banking .....but, a weak company buying another weak company when the demand for their Prime products is fading - doesn't seem like a great idea.

http://problembanklist.com/fdic-sell...arp-loan-0249/

[jk]

Re: How I learned to love the economic crisis: 2010 edition

The really scary aspect of the lastest failures is it seem more and more weak banks are coming into buy the Assets of failed Bank.....I know almost nothing about Banking .....but, a weak company buying another weak company when the demand for their Prime products is fading - doesn't seem like a great idea.

http://problembanklist.com/fdic-sell...arp-loan-0249/

if your problem bank can fatten up ENOUGH, it can become tbtf.

[ThePythonicCow]

Re: How I learned to love the economic crisis: 2010 edition

if your problem bank can fatten up ENOUGH, it can become tbtf.

I suspect that this is rather more like the fattening of Turkeys before Thanksgiving. The scrawniest of the Turkeys are being killed off, so that the limited food supply can be concentrated on the remaining Turkeys.

J.P.Morgan always did detest competition.

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

2 more - definitely falling behind vs. 2009 pace

Earthstar Bank	Southampton	PA	35561	Polonia Bank	December 10, 2010	December 10, 2010
Paramount Bank	Farmington Hills	MI	34673	Level One Bank	December 10, 2010	December 10, 2010

151 vs. 130 in 2009

there were a total of 137 banks shut down in 2009, so the final year's tally will indeed by quite close.

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

6 failed banks thus far - the last of the year?

Bank of Ozarks picks up another...

Community National Bank	Lino Lakes	MN	23306	Farmers & Merchants Savings Bank	December 17, 2010	December 17, 2010
First Southern Bank	Batesville	AR	58052	Southern Bank	December 17, 2010	December 17, 2010
United Americas Bank, N.A.	Atlanta	GA	35065	State Bank and Trust Company	December 17, 2010	December 17, 2010
Appalachian Community Bank, FSB	McCaysville	GA	58495	Peoples Bank of East Tennessee	December 17, 2010	December 17, 2010
Chestatee State Bank	Dawsonville	GA	34578	Bank of the Ozarks	December 17, 2010	December 17, 2010
The Bank of Miami,N.A.	Coral Gables	FL	19040	1st United Bank	December 17, 2010	December 17, 2010

157 vs. 130 in 2009

[mmr]

Re: How I learned to love the economic crisis: 2010 edition

That should be your final tally for 2010 - looks like the FDIC isn't expecting the 2011 total to be much higher, given that they're cutting back on the resolutions division:

As Bank Failures Wane, FDIC Trims Budget

By Joe Adler and Donna Borak, American Banker
December 15, 2010

WASHINGTON — The slowdown in failures has led the Federal Deposit Insurance Corp. to pull back on its budgeting.

On the same day it proposed new capital requirements for all institutions, the FDIC's board of directors approved a 2011 agency budget of $3.96 billion, a 0.7% drop from the previous year.
Though that is only a slight decline, agency officials described the move as an important step.

It represents a "transition point for the agency," said FDIC Vice Chairman Martin Gruenberg.

The spending proposal came as the board took steps to implement the "Collins Amendment," a Dodd-Frank Act provision crafted by Sen. Susan Collins, R-Maine, that establishes an industrywide capital floor as well as new market risk capital standards unveiled last year by the international Basel Committee on Banking Supervision.


The board also finalized a new target ratio of agency reserves to insured deposits — known as the designated reserve ratio — of 2%. The new ratio is well above the previous DRR of 1.25%, but will only serve as a long-term goal that would not be reached before 2027.

But the biggest surprise perhaps from the meeting was the proposed decrease — however small — in the budget. The FDIC had not seen any decline in expenditures since 2006, while spending has expanded tremendously over the past few years to handle the wave of failures.


Still, it was a minor decrease. Agency officials said high numbers of staff were needed to deal with supervisory issues, including a long problem-bank list currently at 860 institutions as well as implementing FDIC reforms resulting from Dodd-Frank.

But it was clear the agency sees positive signs ahead, at least for now. "The budget contemplates that there will be a lower number of failures" in 2011, while being "mindful of course that we have sufficient resources here to maintain readiness in case that's incorrect," Thomas Peddicord, a deputy director in the FDIC's division of finance, told the board.

He said while the number of problem banks is high, that number too is expected to decline.

"That trend appears to be leveling off and I think we would expect that in 2011 that we will reach the peak in terms of problem institutions," he said.

Overall, the FDIC proposed a net increase of 2.5% in staffing compared with 2010 spending — and 6.9% over the proposed budget last year — to a total of 9,252 in authorized personnel. The budget envisions a net drop of 133 positions for the division of resolutions and receiverships, largely because the agency is eliminating 215 resolution positions that had already gone vacant...

[c1ue]

Re: How I learned to love the economic crisis: 2010 edition

That should be your final tally for 2010 - looks like the FDIC isn't expecting the 2011 total to be much higher, given that they're cutting back on the resolutions division:

Indeed.

Thank you for the many insights you gave to this thread.

I think it is quite obvious now that the forecasts for bank failures has been undermined by the cheap money and FASB accounting standards change - and these will continue to work until the next leg collapses: US dollar sovereign risk.