Three Banks Closed Yesterday [Officially Two]

According to the FDIC’s website, First Heritage Bank of Newport Beach and First National Bank of Nevada went into receivership yesterday.  Also according to the FDIC: [Thanks L!]

On July 25, 2008, First National Bank of Nevada, Reno, NV, was closed by the Office of the Comptroller of the Currency (OCC). Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.  As of June 30, 2008, the former First National Bank of Arizona, Scottsdale, AZ, merged with First National Bank of Nevada and is included in this action.

Three more banks down for the count.

 

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8 Comments for this entry

  1. twist says:
    July 26, 2008 at 5:48 AM

     

    From Yahoo yesterday:

    WASHINGTON (Reuters) – U.S. regulators took over two banks on Friday and sold them to Mutual of Omaha Bank, the sixth and seventh bank failures this year as financial institutions struggle with a housing bust and credit crunch.

    Two weeks after the Federal Deposit Insurance Corp seized IndyMac Bancorp Inc (IDMC.PK), the Office of the Comptroller of the Currency said it closed First National Bank of Nevada and First Heritage Bank NA of California.

    First National, characterized as undercapitalized, had total assets of $3.4 billion and $3 billion in deposits. First Heritage, described as critically undercapitalized, had assets of $254 million and $233 million in deposits, regulators said.

    First Heritage of Newport Beach, California, had three branches with customers comprised mostly of corporations, while First National of Reno, Nevada, had 25 branches. Both were owned by First National Bank Holding Co of Scottsdale, Arizona.

    In addition to assuming all the deposits, Mutual of Omaha Bank will purchase about $200 million of assets and pay the FDIC a 4.41 premium to assume the deposits.

    None of the entities are publicly traded.

     

  2. twist says:
    July 26, 2008 at 6:04 AM

    And from the Arizona Republic:

     

    [Thanks M!]

    Arizonans with deposits at failed First National Bank probably won’t notice any changes in service when the institution opens as Mutual of Omaha Bank on Monday. Banking regulators closed the Scottsdale-based company late today. That made First National Bank the sixth bank failure of 2008 and the first involving an Arizona institution since 2002 — and just the second Arizona failure in the past 16 years.

    First National was the victim of problem loans and the lingering real estate slump. All of the institution’s deposits have been acquired by Nebraska-based Mutual of Omaha Bank, a subsidiary of Mutual of Omaha. All 28 offices — including 15 in Arizona — will open under that name on Monday. The other branches are in Nevada and California.

  3. John M. says:
    July 26, 2008 at 6:19 AM

    twist -

    I couldn’t resist (showing my age ;) )

  4. twist says:
    July 26, 2008 at 6:32 AM

    John-

    Ah yes, Mutual of Omaha “The people who pay.” I wonder if they’ll end up paying for this?

    I’ll admit I remember the show, but I was really little at the time. : )

  5. agnostic says:
    July 26, 2008 at 7:00 AM

    I wonder if Mutual of Omaha realizes that the Wild Kingdom is now in the asset portfolio they just acquired…

  6. phxrenter says:
    July 27, 2008 at 11:55 AM

    Imagine my surprise yesterday morning when I logged on to CNN to discover that my (new) hometown bank had been taken over by the Federal Government and, in turn, sold to my (old) hometown insurance company.

    I then logged into my online banking account, managed a sigh of relative relief and proceeded to transfer my savings to another bank.

    Continuing to click, I ended up at Mutual of Omaha’s site to discover the bank has only been around for one year. I see another transfer (checking) in the near future.

    I’ll miss the free cookies my local branch always had. However, not nearly as much as I’d miss the funds in my checking and savings accounts.

  7. Thane Eichenauer says:
    July 27, 2008 at 3:01 PM

    If such a thing as high ground exists I saw an ad in the Arizona Republic that Alliance Bank of Arizona (or rather it’s holding company) is one of the few bankcorporations with an investment grade rating from S&P.

    Disclaimer: I have nothing to do with Alliance Bank of Arizona (but maybe I should).

  8. Coffee says:
    July 27, 2008 at 7:31 PM

    the market will price a MBA tranche for the weakest link. Congress has turned the strongest MBA security into a junk. The MBA market will be price this new FHA backed 650,000 loan; that can be altered; and force the lender write down the principle to WHAT EVER the appraised value is.

    ACK, MTG rates will surge for everyone,

    Help the weak, sub prime (2%) at the expense of all. Is that market capitalism? Not allow the weak to fail? Hey, how about the INTC stock I purchased on Margin at 80.00!!! Will The Gov come and write down the loss and give it back to Intel?

    This bill will make FNM and FRE plummet as they are forced to buy $hit.

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