3 Banks, 1 Credit Union Closed Aug. 28

Year's Tally Now Stands at 94 Failed Institutions Three banks and one credit union were closed by federal regulators on Friday, Aug. 28, raising the tally to 94 failed institutions - 84 banks and 10 credit unions - so far in 2009.

Affinity Bank
Affinity Bank, Ventura, California, was closed on Aug. 28 by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with Pacific Western Bank, San Diego, California, to assume all of the deposits of Affinity Bank.

Affinity Bank had 10 branches. The former Affinity Bank branches located in San Francisco and San Mateo will reopen starting today, and the remaining branches will reopen on Monday as branches of Pacific Western Bank.

As of July 10, 2009, Affinity Bank had total assets of $1 billion and total deposits of approximately $922 million. In addition to assuming all of the deposits of the failed bank, Pacific Western Bank agreed to purchase essentially all of the assets. The FDIC and Pacific Western Bank entered into a loss-share transaction on approximately $934 million of Affinity Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $254 million.

Bradford Bank
Bradford Bank, Baltimore, Maryland, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. To protect the depositors, the FDIC then entered into a purchase and assumption agreement with Manufacturers and Traders Trust Company (M&T), Buffalo, New York, to assume all of the deposits of Bradford Bank.

The nine branches of Bradford Bank were to reopen on Saturday as branches of M&T. Depositors of Bradford Bank will automatically become depositors of M&T.

As of June 30, 2009, Bradford Bank had total assets of $452 million and total deposits of approximately $383 million. In addition to assuming all of the deposits of the failed bank, M&T agreed to purchase essentially all of the failed bank's assets. The FDIC and M&T entered into a loss-share transaction on approximately $338 million of Bradford Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $97 million.

Mainstreet Bank
Mainstreet Bank, Forest Lake, Minnesota, was closed by the Minnesota Department of Commerce, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Mainstreet Bank.

The eight branches of Mainstreet Bank were to reopen on Saturday as branches of Central Bank. Depositors of Mainstreet Bank will automatically become depositors of Central Bank.

As of June 30, 2009, Mainstreet Bank had total assets of $459 million and total deposits of approximately $434 million. Central Bank will pay the FDIC a premium of 0.10 percent to assume all of the deposits of Mainstreet Bank. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets. The FDIC and Central Bank entered into a loss-share transaction on approximately $268 million of Mainstreet Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $95 million.

Free Choice Federal Credit Union
The National Credit Union Administration (NCUA) liquidated Free Choice Federal Credit Union (Free Choice) in Feasterville, Pennsylvania. Its members' share accounts were purchased and assumed by Trumark Financial Credit Union of Trevose, Pennsylvania, providing Free Choice members with uninterrupted credit union service.

The action was taken to protect member assets while addressing operational issues within the credit union. Free Choice's financial condition necessitated closing the credit union. With shares purchased and assumed by Trumark Financial Credit Union (TFCU), Free Choice members are guaranteed full member-owner rights at TFCU.

Headquartered in Trevose, Pennsylvania, TFCU is a full service, $1.25 billion community-chartered credit union that currently serves 91,000 members in neighboring counties in southeastern Pennsylvania. Member accounts are insured up to at least $250,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund, a federal fund backed by the full faith and credit of the U.S. Government.

Chartered in 1955, liquidated Free Choice had assets of more than $326,000, and it served over 400 members from 20 select groups.





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