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Seven More Banks Fail

Toll for year rises to 140

By Mark Huffman
ConsumerAffairs.com

December 20, 2009

Troubled real estate loans, both residential and commercial, lie behind many of the banks' problems. Most of this week's failed banks are in states that have seen both real estate values plummet and foreclosures skyrocket.

The latest failed banks are:

• First Federal Bank of California, a Federal Savings Bank, Santa Monica, California. As of September 30, 2009, it had approximately $6.1 billion in total assets and $4.5 billion in total deposits. It was taken over by OneWest Bank, FSB, Pasadena, California.

• Imperial Capital Bank, La Jolla, California. As of September 30, 2009, it had approximately $4.0 billion in total assets and $2.8 billion in total deposits. It was taken over by City National Bank, Los Angeles, California.

• Independent Bankers' Bank, Springfield, Illinois. As of September 30, 2009, it had approximately $585.5 million in assets and $511.5 million in deposits. FDIC created a bridge bank to take over its operations, Independent Bankers' Bank Bridge Bank.

• New South Federal Savings Bank, Irondale, Alabama. As of September 30, 2009, it had approximately $1.5 billion in total assets and $1.2 billion in total deposits. It was taken over by Beal Bank, Plano, Texas.

• Citizens State Bank, New Baltimore, Michigan. As of September 30, 2009, it had $168.6 million in total assets and $157.1 million in total deposits. FDIC created a new bank, Deposit Insurance National Bank of New Baltimore, to take over its operations.

• Peoples First Community Bank, Panama City, Florida. As of September 30, 2009, Peoples First Community Bank had approximately $1.8 billion in total assets and $1.7 billion in total deposits. It was taken over by Hancock Bank, Gulfport, Mississippi.

• RockBridge Commercial Bank, Atlanta, Ga. As of September 30, 2009, it had approximately $294.0 million in total assets and $291.7 million in total deposits. The FDIC was unable to find another financial institution to take over the banking operations of RockBridge Commercial Bank. As a result, checks to the retail depositors for their insured funds will be mailed on Monday.

Besides being a busy week for the FDIC, it was a costly one as well. The agency estimates the total cost to the Deposit Insurance Fund for closing these seven banks is $1.8 billion.

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