Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
722,032+456
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.99%0.00

Regulators Close Three More Banks

Late Friday, three banks closed in quick succession, with the Federal Deposit Insurance Corp. named receiver. The Office of Thrift Supervision closed Crofton, Md.-based Suburban Federal Savings Bank. Its deposit accounts transferred to Tappahannock, Va.-based Bank of Essex. The Office of the Comptroller of the Currency closed Florida-based Ocala National Bank, the non-brokered deposit accounts of which transferred to Winter Haven, Fla.-based CenterState Bank of Florida. The Utah Department of Financial Institutions closed Salt Lake City-based MagnetBank. No institution was willing to take over failed MagnetBank’s deposits, forcing the FDIC to directly refund insured deposits. “This bank did not have an attractive franchise value, and not many retail deposits or core deposits,” said FDIC spokesman David Barr, according to a MarketWatch bulletin. MagnetBank had total assets of $292.9 million and total deposits of $282.8 million, with no estimated uninsured funds. Suburban Federal had a total $360 million in assets and $302 million in deposits. Bank of Essex, when taking it over, agreed to purchase approximately $348 million in assets at a $45 million discount, and to enter a loss-sharing transaction with the FDIC, which estimates the cost to the insurance fund will total some $126 million. Four-branched Ocala National had total assets of $223.5 million and total deposits of $205.2 million. CenterState, when taking over, agreed to assume all the failed bank’s deposits for a 1.7 percent premium, as well as $23.5 million in assets. The cost to the insurance fund is an estimated $99.6 million. Ocala National’s $17.2 million in brokered deposits were not part of the agreement with CenterState and will be insured directly by the FDIC. The three closings Friday brought the total number of banks closed so far in 2009 to six; the FDIC and state regulators on Jan. 16 shut down two banks and a third — Redlands, Calif.-based Ist Centennial Bank — on Jan. 23. Write to Diana Golobay at diana.golobay@housingwire.com.

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please