US Bank Failure reaches 82 for year

Posted: June 12, 2010 in Banks, Failures
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Regulators shut down Washington First International Bank today bringing the total for the year to 82.  Last year at this time the tally stood at 37.

Washington First International Bank, will cost the FDIC insurance fund $158.4 million. The bank had $520.9 million in assets and $441.4 million in deposits.

East West Bank, based in Pasadena, California agreed to assume all of the deposits, while retaining $501 million of the assets, with the remaining amount  being retained by the FDIC for future sale.

The FDIC’s track record for asset sales the past twenty years is running slightly above 55% book value. See chart below.

Investors buying these distressed assets have seem some bargains, and are we to believe that the FDIC is getting 100% of appraised value on these? According to whose value?

1990 – 2009 Loan Sales

Year Book Value Appraised Value Sale Price # Sold % of SP/BV % of SP/AV
1990 $1,341 $674 $646 106,668 48.2% 95.8%
1991 $2,119 $1,410 $1,455 143,462 68.7% 103.2%
1992 $3,480 $2,756 $2,811 96,529 80.8% 102.0%
1993 $5,387 $3,339 $3,332 136,347 61.9% 99.8%
1994 $4,562 $2,608 $2,654 63,780 58.2% 101.8%
1995 $2,005 $842 $822 23,783 41.0% 97.6%
1996 $4,146 $1,489 $1,458 17,112 35.2% 97.9%
1997 $1,450 $759 $845 23,207 58.3% 111.3%
1998 $335 $101 $204 6,545 60.8% 202.7%
1999 $568 $87 $204 16,976 35.9% 234.5%
2000 $336 $157 $207 11,584 61.5% 131.5%
2001 $230 $91 $106 16,140 46.1% 117.5%
2002 $675 $379 $420 7,299 62.3% 111.0%
2003 $354 $199 $180 2,729 50.8% 90.5%
2004 $69 $40 $40 758 57.9% 100%
2005 $1.6 $1.3 $1.4 13 88.7% 108.3%
2006 $7.8 $2.7 $3.5 66 44.9% 129.6%
2007 $448.8 $408.2 $422.2 11,211 94.1% 103.4%
2008 $1,597.3 $781.1 $915.5 24,526 57.3% 117.2%
2009 $5,683.8 $3,007.9 $2,453.2 63,755 43.2% 81.6%
Total Loan Sales $34,796.3 $19,131.2 $19,180.8 772,385 55.1% 100.3%

Source: FDIC

Chart of bank failures so far in June 2010.

Bank Name

City

State

CERT #

Closing Date

Updated Date

Washington First International Bank Seattle WA 32955 June 11, 2010 June 11, 2010
TierOne Bank Lincoln NE 29341 June 4, 2010 June 4, 2010
Arcola Homestead Savings Bank Arcola IL 31813 June 4, 2010 June 4, 2010
First National Bank Rosedale MS 15814 June 4, 2010 June 4, 2010
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