New York, January 23 -- Five U.S. banks were seized by regulators on Friday, totaling the year’s failure to nine.
The failed banks are Columbia River Bank of Oregon with $1.1 billion in assets and $1 billion in deposits (as of Sept. 30); Charter Bank of Santa Fe with $1.2 billion in assets and $851.5 million in deposits; Evergreen Bank of Seattle with $379.5 million in assets; Premier American Bank with $350.9 million in assets and $326.3 million in deposits; and Bank of Leeton with $20.1 million in assets and $20.4 million in deposits.
All five failed banks were taken over by various institutions. The total of seized banks since 2008 comes to 174.
FDIC sells all banks
The Federal Deposit Insurance Corp (FDIC) sold Premier American Bank's four branches to a subsidiary of Naples called the Bond Street Holdings.
The Bond Street Holdings has been allowed to keep Premier American's name. The new bank will now be reopening from Monday as Premier American Bank N.A. It has so far raised $440 million from 65 mutual funds, hedge funds, private equity firms and individuals.
According to Mr. Healy, CEO and chairman of the new Premier American, the new bank will target Southeast side, particularly Florida.
FDIC also sold Bank of Leeton to Kansas-based Sunflower Bank. However, it will be retaining most of the assets. Charter Bank, based in Santa Fe, went to a subsidiary of Plano, Texas-based Beal Financial Corp., while the Evergreen Bank in Seattle went to Umpqua Bank of Roseburg, Oregon.
Buyers for both the banks will be sharing losses along with the FDIC.
FDIC will also be acquiring a “cash participant instrument” in the deal with Evergreen Bank, which means it will get benefit if the bank's stock price goes up later in the future.
The insurance regulatory also sold the Columbia River Bank (with 21 branches) to Columbia State Bank of Tacoma. The FDIC and Columbia State Bank agreed to share losses for the same.
The FDIC is a U.S. government corporation which guarantees the safety of deposits. It examines and supervises financial institutions for safety.
Insured institutions are thus required to place signs at their place of business stating that the “deposits are backed by the full faith and credit of the United States Government.”
The FDIC is headquartered in Washington D.C. and has five directors on its board.