Archive for January, 2010

Government regulators shut down six banks on Friday, Jan. 29, including American Marine Bank, headquartered in Bainbridge Island.

American Marine was shut down by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insur-ance Corp. as receiver. The FDIC then entered into an agreement to have Columbia State Bank of Tacoma take over the deposits and 11 branches.

American Marine had branches in Kitsap, Clallam, Jefferson, Mason and King counties, all of which will reopen on Saturday, Jan. 30 as Columbia State Bank.

The estimated cost to the FDIC is $58.9 million.

Here is a press release from Washington State DFI:

Olympia – The Washington State Department of Financial Institutions (DFI) closed American Marine Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of American Marine Bank.

The FDIC immediately entered into a purchase and assumption agreement with Columbia State Bank, headquartered in Tacoma, Wash. Columbia State Bank will assume all deposits and certain assets of American Marine Bank, except certain brokered deposits, which will be paid out by the FDIC.

“American Marine’s capital has been depleted by large loan losses and resultant loan loss reserve provisions,” Brad Williamson, Director of DFI’s Division of Banks explained.

“We are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said. “We are pleased, however, to see the bank acquired by Washington State chartered Columbia State Bank. This is a good outcome for bank depositors and borrowers.”

 
American Marine Bank, headquartered in Bainbridge Island, Wash. has branches located in Kitsap, Clallam, Jefferson, Mason and King counties.  All will be assumed by Columbia State Bank. The main office and all of American Marine’s 11 branches will reopen on Saturday, Jan. 30 for those with Saturday hours and on Monday, Feb. 1 for all locations as branches of Columbia State Bank.

“We warmly welcome former American Marine Bank customers into our network of 73 Columbia State Bank Branches in Washington and Oregon,” said Melanie J. Dressel, President and Chief Executive Officer, Columbia Banking System.  “While branches will open under new ownership, deposits are safe, accessible and remain FDIC insured to the maximum provided by law.  We anticipate a smooth transition, and look forward to working with the American Marine Team, who have served their community so well.”

Throughout the weekend and transition, American Marine Bank customers can access their funds by writing checks or using ATM or debit cards. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services also will remain available.

As of Sept. 30, 2009, American Marine Bank had total assets of $361,356,000 and total deposits of $308,452,000.

American Marine Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/americanmarine.htm or www.fdic.gov/news/news/press/2010/index.html  http://www.columbiabank.com, or www.americanmarinebank.com.

For more information about deposit insurance for Washington banks and credit unions, visit www.dfi.wa.gov/consumers/deposits.htm. For details about FDIC coverage and requirements, visit www.fdic.gov or call toll-free 1.877.ASK.FDIC.

DFI recently released FAQs for bank business loan customers in turbulent times at http://dfi.wa.gov/banks/business-loan-faqs.htm.

From the Associated Press, which has some similarities (i.e. electricity) to what’s been happening at Intalco in Ferndale in recent years:

ROME (AP) – Italian Premier Silvio Berlusconi is appealing to Alcoa to hold off on temporarily idling its two smelters in Italy until the European Commission rules on electricity tariffs, his office said Friday.

Alcoa workers occupied part of the tarmac at Cagliari airport in Sardinia in a noisy protest of the company’s plans for nearly several hours, causing several flights to be delayed or canceled. The workers came from an Alcoa plant in Portovesme on the island.

On the mainland, striking workers at another Alcoa plant, in Fusina, near Venice, blocked the gates in the morning, preventing trucks from entering or leaving, the Italian news agency ANSA reported from Venice.

Late last year, Alcoa Inc. said it would idle production at the smelters, affecting about 2,000 workers, after a European Union decision left uncertainty about the company’s ability to secure electricity for the plants at low rates.

The premier’s office said Berlusc! oni wrote to Alcoa CEO Klaus Kleinfeld asking the company to “keep production activity” in the Italian plants and not make any decision about them before the European Commission expected within February.

Berlusconi wrote that not heeding his appeal might have repercussions on government relations with Alcoa.

For 10 years, Italy had given energy-intensive industries a break on power prices. The tariff was approved by the European Commission in 1995, when Alcoa, headquartered in New York, purchased the smelters. Without that subsidy, Alcoa said the smelters can’t make money.

But the EU ruled in November that Italy’s extension of electricity subsidies after 2005 did not comply with regulations, and is demanding that Alcoa repay those benefits to the state. Alcoa is appealing.

No.13 Community Bank and Trust of Cornelia, Ga. was closed, then taken over by SCBT, N.A. of Orangeburg, S.C. Community Bank and Trust had 36 branches. Estimated cost to the FDIC: $354.5 million.

No. 14: First Regional Bank of Los Angeles was closed, then taken over by First Citizens Bank & Trust Co. of Raleigh, N.C. First Regional had eight branches. Estimated cost to the FDIC: $825.5 million.

Three banks were shut down by government regulators early Friday afternoon, one that has a local connection (details below). I’ll update with new posts if there are other closures today:

Closure No. 12 of 2010: Marshall Bank of Hallock, Minn., was closed, then taken over by United Valley Bank of Cavalier, N.D. There were three Marshall branches closed. Estimated cost to the FDIC: $4.1 million. Marshall Bank filed a lawsuit against the Nooksack Indian Tribe last fall alleging the tribe was behind on repayments of a more than $26 million loan used to build and equip the Northwood Casino.

Closure No. 11: Florida Community Bank of Immokalee, Fla. was closed, then taken over by Premier American Bank of Miami. Florida Community Bank had 11 branches. Estimated cost to the FDIC: $352.6 million.

Closure No. 10. First National Bank of Georgia in Carollton, Ga., was closed, then taken over by Community & Southern Bank of Carollton. First National had 11 branches. Estimated cost to the FDIC: $260.4 million.

Everett-based Frontier Bank reported its year-end numbers today. The first part of its report is pasted below (for the full report, go to frontierbank.com). One thing I noticed in the numbers is its Tier 1 leverage ratio is now 2.69 percent, down from 8.62 percent at the end of 2008. The bank needs to get that up to 10 percent to satisfy the FDIC’s Cease-and-Desist order.

EVERETT, WASHINGTON – January 29, 2010 – Frontier Financial Corporation (NASDAQ: FTBK) today announced
results for the quarter and year ended December 31, 2009. For the three months ended December 31, 2009, the Corporation reported a net loss of $33.9 million, or ($7.19) per diluted share, compared to a net loss of $141.1 million, or ($29.93) per diluted share, for the three months ended September 30, 2009, and net loss of $89.5 million, or ($19.03) per diluted share, for the three months ended December 31, 2008. For the year ended December 31, 2009, the Corporation reported a net loss of $258.8 million, or ($54.91) per diluted share, compared to a net loss of $89.7, or ($19.10) per diluted share, a year ago. All results reflect the one-for-ten reverse stock split, which was effective November 24, 2009.
Highlights for the fourth quarter and year ended December 31, 2009 include:
• Net loss decreased $107.2 million, or 76.0%, for the fourth quarter 2009, compared to the previous quarter;
• Annualized tax equivalent net interest margin increased 26 basis point to 2.30% at December 31, 2009, compared to 2.04% at September 30, 2009;
• Nonperforming loans decreased $105.3 million, or 13.0%, for the fourth quarter 2009, compared to the previous
quarter;
• Nonperforming assets decreased $34.0 million, or 3.7%, for the fourth quarter 2009, compared to the previous
quarter;
• The ratio of loans past due 30 to 89 days to total loans improved to 4.3% at December 31, 2009, compared to 7.3%
at September 30, 2009;
• Total deposits, excluding brokered deposits, increased $29.1 million for the fourth quarter 2009, compared to the
previous quarter; and
• Total liquidity, as a percentage of total assets, improved to 13.5% at December 31, 2009, compared to 12.1% at
September 30, 2009.
Patrick M. Fahey, Chairman and CEO of Frontier Financial Corporation said, “It is gratifying to see improving trends due to the tremendous efforts and sacrifices of our staff during these very difficult times. Our progress and improved liquidity are very much a result of the loyalty of our customers and the strong support of the communities we serve, for which we are very grateful.”

According to an article by Bloomberg News Service, Macy’s is planning to eliminate 1,500 positions throughout the company by March 5. Here is a (Link) to the story. According to a Macy’s spokesman, some regional managers are being replaced by local managers to better tailor merchandise to local markets.

Chris and Anna Adams will be moving their business, Old World Deli, about a block north into a bigger space at 1228 N. State St., near Rudy’s Pizzeria.
The 3,000-square-foot space will be triple the size of its current space at 1140 N. State St., Adams said. They are planning to be in the new space in March and are working on adding several new features, including an extra deli case. They are also planning to be open for breakfast and will be offering espresso. The deli will also expand its beer and wine selections.
The Adams opened Old World Deli in June 2007.

I’ll post a story later today, but here are some details:

Washington Federal Inc. has named Thomas F. Kenney senior vice president and northern Washington regional executive for the company. Kenney will locate his office in downtown Bellingham and serve as the company’s senior executive here, according to a Washington Federal press release. He will be responsible for Washington Federal’s banking activities in Whatcom, Skagit and parts of Snohomish counties.

Kenney was an executive at Haggen, serving as vice president of finance for the past 13 years for its sister company, Briar Development Co. He previously spent 20 years in the banking industry and was on Washington Federal’s board of directors. He will step down from the board to take this position.

Here’s something The Blackdrop coffeehouse posted on its Facebook page, worth passing along to those who stop by there for coffee:

ATTENTION: Due to the boiler in the Mt. Baker building breaking, and the replacement part being on order, the Drop has no hot running water, and therefore has to CLOSE until the situation is remedied. We are hopeful the part will be in place by Tuesday afternoon, so look for us on our Wednesday opening, normal time, 7 …a.m. Keep your eyes peeled for updates, right here! We’re so sorry! (We’re bummed, too.)

Here are the details from the FDIC:

Columbia River Bank, The Dalles, Oregon, was closed today by the Oregon Division of Finance and Corporate Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of Columbia River Bank.

The 21 branches of Columbia River Bank will reopen during their normal business hours beginning Saturday as branches of Columbia State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Columbia State Bank that it has completed systems changes to allow other Columbia State Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Columbia River Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2009, Columbia River Bank had approximately $1.1 billion in total assets and $1.0 billion in total deposits. Columbia State Bank will pay the FDIC a premium of 1.0 percent to assume all of the deposits of Columbia River Bank. In addition to assuming all of the deposits of the failed bank, Columbia State Bank agreed to purchase essentially all of the assets.

The FDIC and Columbia State Bank entered into a loss-share transaction on $697.4 million of Columbia River Bank’s assets. Columbia State Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-523-0640. The phone number will be operational this evening until 9:00 p.m., Pacific Standard Time (PST); on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/columbiariver.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $172.5 million. Columbia State Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to all alternatives. Columbia River Bank is the ninth FDIC-insured institution to fail in the nation this year, and the first in Oregon. The last FDIC-insured institution closed in the state was Community First Bank, Prineville, on August 7, 2009.