3 Banks Closed, 1 Credit Union Conserved

74 Failed Institutions So Far in 2011
3 Banks Closed, 1 Credit Union Conserved
Three banks were closed and one credit union was conserved by state and federal banking regulators on Friday, July 22. These failures bring the year's tally to 74 failed institutions.

The latest failures:

Bank of Choice, Greeley, Colo.

Bank of Choice, Greeley, Colo., was closed by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corp. [FDIC] as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank Midwest, National Association, Kansas City, Mo., to assume all of the deposits of Bank of Choice.

As of March 31, 2011, Bank of Choice had approximately $1.07 billion in total assets and $924.9 million in total deposits. In addition to assuming all of the deposits, Bank Midwest, N.A. agreed to purchase approximately $853.0 million of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund [DIF] will be $213.6 million.

LandMark Bank of Fla., Sarasota

American Momentum Bank, Tampa, Fla., acquired the banking operations, including all the deposits, of LandMark Bank of Fla., Sarasota. The bank was closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with American Momentum Bank.

As of March 31, 2011, LandMark Bank of Fla. had total assets of $275.0 million and total deposits of $246.7 million.

The FDIC estimates that the cost to the DIF for LandMark Bank of Fla. will be $34.4 million.

Southshore Community Bank, Apollo Beach, Fla.

American Momentum Bank, Tampa, Fla., acquired the banking operations, including all the deposits, of Southshore Community Bank, Apollo Beach, Florida. The bank was closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with American Momentum Bank.

As of March 31, 2011, Southshore Community Bank had approximately $46.3 million in total assets and $45.3 million in total deposits.

The FDIC estimates that the cost to the DIF for Southshore Community Bank will be $8.3 million.

Saguache County Credit Union, Moffat, Colo.

The National Credit Union Administration [NCUA] assumed control of the operations of Saguache County Credit Union, a state-chartered, federally insured credit union headquartered in Moffat, Colo.

The Commissioner of the Colorado Division of Financial Services appointed NCUA as conservator for Saguache County Credit Union. The state placed the credit union into conservatorship due to a declining financial condition. While continuing normal member services, NCUA will work to resolve issues affecting the institution's safety and soundness.

In its last Call Report, Saguache County Credit Union reported $17.7 million in assets and 3,165 members.

The Federal Credit Union Act authorizes the NCUA Board to accept appointment as conservator when necessary to conserve the assets of a federally insured credit union, protect members' interests, or protect the NCUSIF. Saguache County Credit Union is the ninth federally insured credit union placed into conservatorship during 2011.


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