Five Banks, Two Credit Unions Fail on July 30

Actions Raise 2010 Tally to 120 Failed Institutions
Five Banks, Two Credit Unions Fail on July 30
Federal and state banking regulators closed five banks and one credit union on Friday, July 30, and another credit union was placed into conservatorship.

These seven failures raise the total number of failed institutions to 120 so far in 2010.

The latest failures are:

Norbel Credit Union of Fort Collins, Colo.

The National Credit Union Administration (NCUA) was appointed liquidating agent of Norbel Credit Union of Fort Collins, Colo., by the Colorado Division of Financial Services (DFS). Security Service Federal Credit Union of San Antonio immediately purchased and assumed Norbel's assets, liabilities and members.

Norbel CU had $120,038,129 in total assets.

NorthWest Bank and Trust, Acworth, Ga.

NorthWest Bank and Trust, Acworth, Ga., was closed by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, Macon, Ga., to assume all of the deposits of NorthWest Bank and Trust.

The two branches of NorthWest Bank and Trust were to reopen on Saturday as branches of State Bank and Trust Company. Depositors of NorthWest Bank and Trust will automatically become depositors of State Bank and Trust Company.

NorthWest Bank and Trust had $167.7 million in total assets.

The FDIC estimates that the cost to the DIF will be $39.8 million.

Coastal Community Bank, Panama City Beach, Fla.

Coastal Community Bank was closed by the Office of Thrift Supervision, which then appointed the FDIC as receiver. To protect depositors, the FDIC entered into purchase and assumption agreements with Centennial Bank, Conway, Ark., to assume all the deposits and essentially all the assets of the failed institution.

Depositors of Coastal Community Bank will automatically become depositors of Centennial Bank. Coastal Community Bank had 11 branches, which will reopen as branches of Centennial Bank during normal business hours.

Coastal Community Bank had approximately $372.9 million in total assets.

The FDIC estimates that the cost to the DIF will be $94.5 million.

Bayside Savings Bank, Port Saint Joe, Fla.

Bayside Savings Bank was closed by the Office of Thrift Supervision, which then appointed the FDIC as receiver. To protect depositors, the FDIC entered into purchase and assumption agreements with Centennial Bank, Conway, Ark., to assume all the deposits and essentially all the assets of the failed institution.

Depositors of Bayside Savings Bank will automatically become depositors of Centennial Bank. Bayside Savings Bank had two branches, which will reopen as branches of Centennial Bank during normal business hours.

Bayside had $66.1 million in total assets.

The FDIC estimates that the cost to the DIF will be $16.2 million.

Family First Federal Credit Union of Orem, Utah

Family First Federal Credit Union of Orem, Utah, was placed into conservatorship by the NCUA, due to declining financial condition. The credit union was not adequately capitalized under standards set forth in the Federal Credit Act, and has earnings insufficient to enable it to continue under present management. The credit union's problems stemmed from problems in its loan portfolio.

NCUA's goal is to continue credit union service to the members and ensure safe and sound credit union operations. Member deposits are safe. Their accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.

Family First Federal Credit Union has approximately $139.5 million in total assets.

The Cowlitz Bank, Longview, Wash.

Cowlitz Bank, Longview, Wash., was closed by the Washington Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Olympia, Wash., to assume all of the deposits of The Cowlitz Bank.

The nine branches of The Cowlitz Bank, including the two branches operating in Oregon and three branches operating in Washington under the name Bay Bank, a division of The Cowlitz Bank, were to reopen on Saturday during normal banking hours as branches of Heritage Bank. Depositors of The Cowlitz Bank will automatically become depositors of Heritage Bank.

The FDIC estimates that the cost to the DIF will be $68.9 million.

LibertyBank, Eugene, Ore.


LibertyBank, Eugene, Ore., was closed by the Oregon Division of Finance and Corporate Securities, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Home Federal Bank, Nampa, Idaho, to assume all of the deposits of LibertyBank.

The 15 branches of LibertyBank will reopen on Monday as branches of Home Federal Bank. Depositors of LibertyBank will automatically become depositors of Home Federal Bank.

LibertyBank had approximately $768.2 million in total assets.

The FDIC estimates that the cost to the DIF will be $115.3 million.





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