by Calculated Risk on 10/23/2009 07:11:00 PM

Failure "two by two"
A flood is on horizon
The Ark is near full.
by Soylent Green is People
From the FDIC:

Bank of Elmwood, Racine, Wisconsin, was closed today by the Wisconsin Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of September 30, 2009, Bank of Elmwood had total assets of $327.4 million and total deposits of approximately $273.2 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $101.1 million. ... Bank of Elmwood is the 104th FDIC-insured institution to fail in the Nation this year, and the first in Wisconsin. The last FDIC-insured institution closed in the state was The First National Bank of Blanchardville, Blanchardville, on May 9, 2003

From the FDIC:

Riverview Community Bank, Otsego, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of August 31, 2009, Riverview Community Bank had total assets of $108 million and total deposits of approximately $80 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20 million. ... Riverview Community Bank is the 105th FDIC-insured institution to fail in the Nation this year, and the fifth in Minnesota. The last FDIC-insured institution closed in the state was Jennings State Bank, Spring Grove, on October 2, 2009.

That makes six today ...

by Calculated Risk on 10/23/2009 06:10:00 PM

Flagship, Hillcrest crash
Florida deals gone badly
Few survivors left
by Soylent Green is People
From the FDIC:

Hillcrest Bank Florida, Naples, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of October 1, 2009 , Hillcrest Bank Florida had total assets of $83 million and total deposits of approximately $84 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45 million. ... Hillcrest Bank Florida is the 102nd FDIC-insured institution to fail in the Nation this year, and the eighth in Florida. The last FDIC-insured institution closed in the state was Partners Bank, Naples, earlier this evening.

From the FDIC:

Flagship National Bank, Bradenton, Florida, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of August 31, 2009, Flagship National Bank had total assets of $190 million and total deposits of approximately $175 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $59 million. ... Flagship National Bank is the 103rd FDIC-insured institution to fail in the Nation this year, and the ninth in Florida. The last FDIC-insured institution closed in the state was Hillcrest Bank Florida, Naples, which also closed today.

by Calculated Risk on 10/23/2009 05:35:00 PM

An apropos name
American United
We are all failed now.
by Soylent Green is People
From the FDIC:

American United Bank, Lawrenceville, Georgia, was closed today by the Georgia Department of Banking & Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of August 11, 2009, American United Bank had total assets of $111 million and total deposits of approximately $101 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $44 million. ... American United Bank is the 101st FDIC-insured institution to fail in the Nation this year, and the twentieth in Georgia. The last FDIC-insured institution closed in the state was Georgian Bank, Atlanta, on September 25, 2009.

The banks are small, but the loss ratios are high! Two down already ...

by Calculated Risk on 10/23/2009 05:07:00 PM

One Hundred, so far....
The pig still in the python
Working its way through.
by Soylent Green is People
FDIC Press Release:

Partners Bank, Naples, Florida, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of September 30, 2009, Partners Bank had total assets of $65.5 million and total deposits of approximately $64.9 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $28.6 million. ... Partners Bank is the 100th FDIC-insured institution to fail in the Nation this year, and the seventh in Florida. The last FDIC-insured institution closed in the state was Community National Bank of Sarasota County, Venice, on August 7, 2009.

Just a minnow, but it counts.

by Calculated Risk on 10/23/2009 04:00:00 PM

While we wait for the 100th bank failure of 2009 ...

Click on graph for larger image in new window.

From Doug Short of dshort.com (financial planner).

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

The S&P was off 1.2% today. The index is up about 60% from the bottom (and off 31% from the peak).

Two different views on CIT:

From Bloomberg: CIT Sees Recovery as Low as 6 Cents in Bankruptcy

CIT said in a regulatory filing today that if its reorganization plan fails, it “will likely face bankruptcy” and that those claims would fetch recoveries between 6 cents and 37 cents a dollar.

And from MarketWatch: Icahn urges bondholders not to accept CIT plan

Icahn said if assets on the comapny's balance sheet are "run off" in a controlled way, CIT bonds will be worth at least 80 cents to 85 cents on the dollar.

A few CRE stories:

Yesterday from the NY Times: Court Deals Blow to Owners of Apartment Complex

And more Tishman troubles, from Bloomberg: Tishman Speyer Office Park in L.A. Faces Foreclosure (ht Brian)

A Tishman Speyer Properties LP office park in California ... is the subject of a foreclosure lawsuit saying the owners failed to repay $154 million in debt due in July.

Tishman Speyer and Walton Street Capital LLC bought the Campus at Playa Vista at the top of the U.S. real estate boom in 2007. KeyBank National Association sued to foreclose against limited partnerships controlling the Los Angeles property ... The Los Angeles Business Journal reported Oct. 19 that a mortgage on the property was up for sale for $50 million.

If that LA Business Journal story is correct, the lenders were trying to sell the $150 million note for $50 million. Ouch.

And from Bloomberg: NYC Tower Buyers Wrestle Towering Vacancy Dilemma (ht Mike In Long Island, others!)

... Worldwide Plaza [is 40% vacant]. It’s one ... George Comfort & Sons Inc., was able to buy the ... in July for $590 million, two years after it sold for almost three times as much.

The purchase price may allow Duncan to undercut the rents competitors charge as he leases his 709,000 square feet. Manhattan has 59 million feet of available offices, according to brokerage Colliers ABR, the most since June 1996, and rents for the best space are down more than 30 percent from their peak last year.