First National Bank of Georgia, Florida Community Bank, Community Bank and Trust, and First Regional Bank. Also This Week: Federal Reserve Requires Two Banks To Preserve and Boost Capital; and Los Padres Bank Meets One Regulator's Preservation Goal
The Office of the Comptroller of the Currency closed the First National Bank of Georgia in Carrollton, GA, and appointed the FDIC as receiver.
The FDIC entered into a purchase and assumption agreement with Community & Southern Bank, a newly chartered institution also based in Carrollton, to assume all of the deposits and 11 branches of First National Bank of Georgia. Community & Southern Bank will pay the FDIC a premium of 1.25% to assume the deposits and also agreed to purchase essentially all of the assets. As of Sept. 30, First National Bank of Georgia had $832.6 million in total assets and $757.9 million in total deposits.
The FDIC and Community & Southern Bank entered into a loss-share transaction on $607.4 million of First National Bank of Georgia's assets. Community & Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost to the Deposit Insurance Fund will be $260.4 million.
The Florida Office of Financial Regulation closed Florida Community Bank in Immokalee, FL, and appointed the FDIC as receiver.
The FDIC entered into a purchase and assumption agreement with Premier American Bank NA of Miami to assume all of the deposits and 11 branches of Florida Community Bank. Premier American Bank will pay the FDIC a premium of 0.4% to assume all of the deposits.
In addition, Premier American agreed to purchase $499.1 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. As of Sept. 30, Florida Community Bank had $875.5 million in total assets and $795.5 million in total deposits. About one-third of its assets were classified as nonperforming loans or other real estate owned.
This is Premier American Bank, N.A.'s second acquisition of a failed bank in as many weeks.
As of Sept. 30, Florida Community Bank held $85 million in foreclosed assets, including $25 million of nonresidential properties.
The FDIC and Premier American Bank entered into a loss-share transaction on $305.4 million of Florida Community Bank's assets. The FDIC also agreed to acquire an equity appreciation instrument. The FDIC estimates that the cost to the Deposit Insurance Fund will be $352.6 million.
The Georgia Department of Banking and Finance closed Community Bank and Trust in Cornelia, GA, and appointed the FDIC as receiver.
The FDIC entered into a purchase and assumption agreement with SCBT NA of Orangeburg, SC, to assume all of the deposits and 36 branches of Community Bank and Trust. SCBT did not pay the FDIC a premium for the deposits.
In addition, SCBT agreed to purchase essentially all of the failed bank's assets. As of Sept. 30, Community Bank and Trust had $1.21 billion in total assets and $1.11 billion in total deposits.
SCBT will not acquire any of the assets or assume any liabilities of Community Bank & Trust's former bank holding company, Community Bankshares Inc., nor its other bank subsidiaries, Community Bank & Trust of West Georgia and Community Bank & Trust of Alabama.
The FDIC and SCBT entered into a loss-share transaction on $827.7 million of Community Bank and Trust's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $354.5 million.
The California Department of Financial Institutions closed First Regional Bank in Los Angeles and appointed the FDIC as receiver.
The FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Co. in Raleigh, NC, to assume all of the deposits and eight branches. First-Citizens Bank & Trust Company did not pay the FDIC a premium for the deposits.
In addition, First-Citizens Bank agreed to purchase $2.17 billion of the First Regional Bank's assets. The FDIC retained the remaining assets for later disposition. As of Sept. 30, First Regional Bank had $2.18 billion in total assets.
As of Sept. 30, First Regional reported holding about $73 million in foreclosed assets of which $34 million was identified as multifamily properties. It also had another $81 million in multifamily- and nonresidential-backed loans listed as in nonaccrual.
The FDIC and First-Citizens Bank entered into a loss-share transaction on $2 billion of First Regional Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $825.5 million.
Federal Reserve Requires Two Banks To Preserve and Boost Capital
Riverside Banking Co. in Fort Pierce, FL, entered into a written agreement with the Federal Reserve Bank of Atlanta to preserve capital and come up with a capital plan within 60 days that addresses its volume of classified credits and concentrations of credit.
Riverside Banking Co. is a bank holding company that owns Riverside National Bank of Florida also in Fort Pierce.
Riverside National had assets of $3.46 billion and reported a net loss for the quarter ended Sept. 30 of $134 million. Riverside reported $1.96 billion in net loans and leases, about 24% of which were concentrated in commercial real estate. Another $284 million of assets were identified in nonaccrual status, of which $47 million were backed by multifamily and nonresidential properties. The bank also reported $14.6 million in foreclosed commercial properties.
Separately, Guaranty Bancorp and its bank subsidiary, Guaranty Bank and Trust Co. in Denver, CO, entered into a written agreement with the Federal Reserve Bank of Kansas City and the Colorado Division of Banking.
The written agreement primarily establishes timeframes for the completion of remedial capital measures identified.
"We have been working proactively over the last year to address our capital position, liquidity and credit quality and are in a stronger financial position now than we were at the completion of last year's regulatory examination," said Dan Quinn, president and CEO of the company. "We have raised $57.8 million, net of expenses, of additional capital. With this capital investment, we have prepared ourselves for a solid, long-term future."
"We have also taken measures to reduce the bank's credit risk profile through the identification and reduction of higher-risk loans and aggressively addressing our nonperforming loans and past dues as evidenced by the 26.5% decline in nonperforming loans in the fourth quarter 2009," Quinn said.
Guaranty Bancorp reported that for the period ended Dec. 31, its quarterly loss narrowed from the prior quarter to $1.9 million. Non-performing loans declined by $21.5 million, or 26.5% from the end of the prior quarter, while its allowance for loan losses to loans increased to 3.42%. Delinquent loans declined by $39.8 million, or 64.5%. The company's net loss for 2009 was $29.2 million.
The bank reported $921.2 million of real estate loans as Dec. 31 compared to $998.6 million a year earlier, a decrease of $77.4 million. The banks nonperforming loans decreased from $81 million as of Sept. 30 to about $60 million primarily the result of dispositions and loan transfers to other real estate owned during the fourth quarter. Its total foreclosed assets jumped up from $484,000 a year ago to $37.2 million at the end of 2009
Los Padres Bank Meets One Regulator's Preservation Goal
The Office of Thrift Supervision has deemed Harrington West Financial Group Inc., the holding company for Los Padres Bank FSB, to be adequately capitalized and released it from the its prompt corrective action process. This should reduce Los Padres Bank's FDIC insurance assessments in the future.
In the fourth quarter of last year, Los Padres Bank sold $96.2 million of the assets and loans and all $94.9 million of the deposits of its Harrington Bank division in Kansas to Arvest Bank for net book value plus a $4.1 million premium.
Harrington West and Los Padres Bank still remain subject to the OTS's Cease and Desist Order of Oct. 14, that, among other things required Los Padres Bank to certain capital ratio levels by Dec. 31. Harrington West did not provide any new information where it stood in regard to those goals, though it said that it continues to work on a capital plan to reach the ultimate capital requirements.
Harrington West Financial Group is a $1.1 billion, diversified, financial institution holding company and operates 14 full service banking offices on the central coast of California and the Phoenix metro area.
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Mark Heschmeyer