8/23 Put on your Party Hats it’s FDIC Bank Failure Friday Again!

 

by John Galt
August  23, 2013 21:45 ET

 

 

Sheila Bair must be getting jealous.

The FDIC resumed its war on small banks tonight by zapping two more while the big fish continue to poop on the regulators, the public, and steal the taxpayers blind. Tonight’s victims are not really shocking as the bank in Western Tennessee was already on the troubled list as real estate collapsed in that part of the state (Community Re-investment Act anyone?) while the second bank was in Arizona which is basically what Florida would look like without water, humidity, and still a gazillion empty homes.

From the FDIC website:

CB&S Bank, Inc. Russellville, Alabama, Assumes All of the Deposits of Community South Bank, Parsons, Tennessee

 

FOR IMMEDIATE RELEASE
August 23, 2013

 

Community South Bank, Parsons, Tennessee, was closed today by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CB&S Bank, Inc. Russellville, Alabama, to assume all of the deposits of Community South Bank.

 

The 15 branches of Community South Bank will reopen as branches of CB&S Bank, Inc. during their normal business hours. Depositors of Community South Bank will automatically become depositors of CB&S Bank, Inc. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Community South Bank should continue to use their existing branch until they receive notice from CB&S Bank, Inc. that it has completed systems changes to allow other CB&S Bank, Inc. branches to process their accounts as well.

 

This evening and over the weekend, depositors of Community South Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

 

As of June 30, 2013, Community South Bank had approximately $386.9 million in total assets and $377.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, CB&S Bank, Inc. agreed to purchase approximately $121.7 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

 

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-883-4390. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/communitysouth.html.

 

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $72.5 million. Compared to other alternatives, CB&S Bank, Inc.’s acquisition was the least costly resolution for the FDIC’s DIF. Community South Bank is the 19th FDIC-insured institution to fail in the nation this year, and the second in Tennessee. The last FDIC-insured institution closed in the state was Mountain National Bank, Sevierville, on June 7, 2013.

 

COMMUNITY_SOUTH_FAILED_GRAPHIC

And from Arizona, victim#2:

First Fidelity Bank, National Association, Oklahoma City, Oklahoma, Assumes All of the Deposits of Sunrise Bank of Arizona, Phoenix, Arizona

 

FOR IMMEDIATE RELEASE
August 23, 2013

 

Sunrise Bank of Arizona, Phoenix, Arizona, was closed today by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Fidelity Bank, National Association, Oklahoma City, Oklahoma, to assume all of the deposits of Sunrise Bank of Arizona.

 

The six branches of Sunrise Bank of Arizona will reopen as branches of First Fidelity Bank, National Association during their normal business hours. Depositors of Sunrise Bank of Arizona will automatically become depositors of First Fidelity Bank, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Sunrise Bank of Arizona should continue to use their existing branch until they receive notice from First Fidelity Bank, National Association that it has completed systems changes to allow other First Fidelity Bank, National Association branches to process their accounts as well.

 

This evening and over the weekend, depositors of Sunrise Bank of Arizona can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

 

As of June 30, 2013, Sunrise Bank of Arizona had approximately $202.2 million in total assets and $196.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Fidelity Bank, National Association agreed to purchase essentially all of the assets.

 

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-430-7974. The phone number will be operational this evening until 9:00 p.m., Mountain Standard Time (MST); on Saturday from 9:00 a.m. to 6:00 p.m., MST; on Sunday from noon to 6:00 p.m., MST; on Monday from 8 a.m. to 8 p.m., MST; and thereafter from 9:00 a.m. to 5:00 p.m., MST. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/sunrisebank-az.html.

 

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.0 million. Compared to other alternatives, First Fidelity Bank, National Association’s acquisition was the least costly resolution for the FDIC’s DIF. Sunrise Bank of Arizona is the 20th FDIC-insured institution to fail in the nation this year, and the third in Arizona. The last FDIC-insured institution closed in the state was Central Arizona Bank, Scottsdale, on May 14, 2013.

SUNRISE_BANK_FDIC_FAILEDjgfla

Only $89 million dollars. Good thing, cough, gag, hilarity, belly laugh, snicker, the “too big to fail” banks are in such good shape.

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