FDIC: Two Friday night special bankruptcies

By Edward Harrison On Oct 11, 2008

They did it again. The FDIC closed down two banks on Friday night after the market had closed. The two bans in question are Meridian Bank of Eldred, Illinois and Main Street Bank of Northville, Michigan. As always seems the case for the FDIC, the two banks in question were relatively small — Meridian had $39 million in assets and #36 million in deposits while Main Street had assets of $98 million and deposits of $86 million. These mark failures 14 and 15 for the credit crisis, a list which includes Washington Mutual, but not Wachovia.

See my list of Bankrupt global financial institutions for major bankruptcies and my Credit Crisis Timeline for all bank writedown announcements.

In both cases, the FDIC was able to find another lender to acquire the deposit base of each institution. National Bank acquired all of the deposits of Meridian, including any deposits above the FDIC-insured limit, without paying a premium. National also will purchase $7.55 million of Meridians assets. The FDIC will retain the other assets “for later disposition.”

Monroe Bank & Trust stepped in for Main Street’s deposits and again acquired all of the deposits of Main Street, including any deposits above the FDIC-insured limit. So, there will be no interruption of access to deposits for anyone. That is much better than what happened n the case of IndyMac. Obviously, the FDIC has learned how to deal with this more effectively. The FDIC said further:

Monroe Bank & Trust has agreed to pay a total premium of 1 percent for the failed bank’s deposits. In addition, Monroe Bank & Trust will purchase approximately $16.9 million of Main Street’s assets, and have a 90-day option to purchase approximately $1.1 million in premises and fixed assets. The FDIC will retain the remaining assets for later disposition.

List of bankruptcies

Bank Name	Closing Date	Updated Date
Meridian Bank, Eldred, IL	10-Oct-08	10-Oct-08
Main Street Bank, Northville, MI	10-Oct-08	10-Oct-08
Washington Mutual Bank, Henderson, NV and Washington Mutual Bank FSB, Park City, UT	25-Sep-08	25-Sep-08
Ameribank, Northfork, WV	19-Sep-08	19-Sep-08
Silver State Bank, Henderson, NV	5-Sep-08	5-Sep-08
En Español
Integrity Bank, Alpharetta, GA	29-Aug-08	29-Aug-08
The Columbian Bank and Trust, Topeka, KS	22-Aug-08	22-Aug-08
First Priority Bank, Bradenton, FL	1-Aug-08	1-Aug-08
First Heritage Bank, NA, Newport Beach, CA	25-Jul-08	25-Jul-08
First National Bank of Nevada, Reno, NV	25-Jul-08	25-Jul-08
IndyMac Bank, Pasadena, CA	11-Jul-08	11-Jul-08
First Integrity Bank, NA, Staples, MN	30-May-08	25-Jul-08
ANB Financial, NA, Bentonville, AR	9-May-08	25-Jul-08
Hume Bank, Hume, MO	7-Mar-08	25-Jul-08
Douglass National Bank, Kansas City, MO	25-Jan-08	25-Jul-08
Miami Valley Bank, Lakeview, OH	4-Oct-07	25-Jul-08
NetBank, Alpharetta, GA	28-Sep-07	25-Jul-08

All in all, this is a positive outcome for the banking system and depositors as the operations seem to be fairly seamless.

Sources
National Bank Acquires All the Deposits of Meridian Bank, Eldred, Illinois, FDIC Press Release
Monroe Bank & Trust Acquires All the Deposits of Main Street Bank, Northville, Michigan, FDIC Press Release
FDIC Failed Bank List – FDIC Website