Tag Archives: Bank Failure

FDIC announced Friday the closure of yet another insured bank, bringing the count up to 12 in the year's first half. The Oklahoma State Banking Department shut down Freedom State Bank over the weekend, closing the book on an institution described by FDIC in early May as "critically undercapitalized."

The list of 2014 bank collapses grew into the double digits over the weekend as River Valley Bancorp was forced to close two of its subsidiary operations. In separate releases issued Friday, FDIC announced the shuttering of Valley Bank branches in Moline, Illinois, and Fort Lauderdale, Florida, bringing the 2014 bank failure tally to 11 so far.

Following a prior collapse in Ohio, FDIC announced over the weekend the closure of another bank: Slavie Federal Savings Bank of Bel Air, Maryland, has been closed. The agency entered into a purchase and assumption agreement with Bay Bank, FSB of Lutherville, Maryland, to assume all the deposits of the recently shuttered Slavie Federal Savings Bank.

Another FDIC-insured bank closed its doors over the long weekend, bringing the national tally to eight so far this year. According to a release from the agency, Columbia Savings Bank of Cincinnati, Ohio, was shut down by the Ohio Division of Financial Institutions. As of March 31, the closed bank had roughly $36.5 million in assets and $29.5 million in deposits, "essentially all" of which is going to Indiana-based United Fidelity Bank.

An Illinois bank has closed its doors for good, bringing the national tally of FDIC-insured bank collapses to seven so far this year. The agency announced Friday the closure of AztecAmerica Bank, which was shut down by the Illinois Department of Financial & Professional Regulation. The bank, based in Berwyn, is the state's second failure of 2014.

The South Carolina Board of Financial Institutions closed the five branches of Allendale Country Bank, Fairfax, South Carolina on Friday. The FDIC was appointed as the receiver and to protect the depositors, an assumption agreement was made was made with Palmetto State Bank, Hampton, South Carolina.

Four California men have been indicted on federal charges of conspiracy, bank fraud, wire fraud, and more in a case relating to the collapse of the Sonoma Valley Bank in August 2010. According to a release from the Special Inspector General for the Troubled Asset Relief Program, the accused allegedly "skirted the bank's internal controls and defrauded Sonoma Valley Bank by authorizing the bank to lend $9.5 million to a straw purchaser."

FDIC-insured institutions earned a net income of $154.7 billion over the year in 2013, a 9.6 percent increase over the previous year, according to a report released by the agency. “[T]he industry continues to experience difficulty growing revenue,” said FDIC chairman Martin J. Gruenberg. He listed “[n]arrow margins, modest loan growth, and a decline in mortgage refinancing activity” as hindrances to revenue growth.

FDIC announced the closure of an Oklahoma bank over the weekend, marking the first insured collapse in the Sooner State in more than a year and a half.

West Chicago's DuPage National Bank has the dubious honor of being the first FDIC-insured institution to close in 2014.