Archive for April, 2010
Frontier Bank’s stock more than doubled in early morning trading, rising to more than $6 a share. I don’t see any immediate news as to why, but the company has been trying to find a buyer to avoid being shut down by government regulators. The bank is based in Everett and has offices in Bellingham and Lynden.
Government regulators seem to have the bulls-eye on Illinois today, closing a total of seven banks in that state today. Here are details on the latest three, bringing the U.S. total to 57 so far in 2010:
No. 55: Lincoln Park Savings Bank of Chicago was shut down, then taken over by Northbrook Bank of Chicago. Lincoln had four branches. Estimated cost to the FDIC: $48.4 million.
No. 56: Peotone Bank & Trust of Peotone, Ill. was shut down, then taken overy by First Midwest Bank of Itasca, Ill. Peotone had two branches. Estimated cost to the FDIC: $31.7 million.
No. 57: Wheatland Bank of Naperville, Ill. was shut down, then taken over by Wheaton Bank & Trust of Wheaton, Ill. Wheatland had one branch. Estimated cost to the FDIC: $133 million.
Government regulators rolled into Illinois this afternoon, shutting down four banks to bring the total to 54 this year. Details are below. I’ll update with new posts if there are any other bank closures:
No. 51 – Amcore Bank of Rockford, Ill. was shut down, then taken over by Harris National Association of Chicago. Amcore had 58 branches. Estimated cost to the FDIC: $220.3 million.
No. 52 – Broadway Bank of Chicago was shut down, then taken over by MB Financial of Chicago. Broadway had four branches. Estimated cost to the FDIC: $394.3 million.
No. 53 – CitizensBank & Trust of Chicago was shut down, then taken over by Republic Bank of Chicago. CitizensBank has one branch. Estimated cost to the FDIC: $20.9 million.
No. 54 – New Century Bank of Chicago was shut down, then taken over by MB Financial of Chicago. New Century had three branches. Estimated cost to the FDIC: $125.3 million.
Bellingham Aviation Services has begun offering a new instrument ground school.
According to a company press release, six local private pilots have started the advance coursework, which includes operating aircraft in clouds.
“We are excited to have such a great group of pilots,” said Jeff Eriksen, chief flight instructor at BAS, in the press release. “These six are driven to improve their skills through continued learning, and their commitment to safety sets a great example to all pilots.”
For details on the company, click this (link).
It’s Sterling Savings bank, which has been able to maintain customer loyalty despite being hit with a cease-and-desist order last year by the Federal Deposit Insurance Corp. Below is the list:
I was reading Specs Talk, a newsletter sent out by Chain Store Age that gives readers insight about what’s happening in the retail chain store industry. Something I’ve noticed in the newsletter is the uptick in companies talking about expansions. There was very little talk about retail chain expansion last year, so this may be a further indication companies are starting to be more aggressive and there’s better access to credit. Here are some examples of companies in expansion mode (None of these companies mentioned in Specs Talk specifically expanding into this region):
– Five Below, a clothing store for tweens and teens, is adding 40 new stores in 2010.
– Bed Bath & Beyond is planning to open 60 new stores in 2010.
– Urban Outfiiters to open 45 stores this year.
– MicroSoft is testing the retail waters, with plans to open retail stores in Denver and San Francisco.
Here are some highlights from US Bank, which has branches in Bellingham, Blaine, Ferndale and Lynden:
U.S. Bancorp Reports Net Income for the First Quarter of 2010
Reports 42 Percent Growth in Earnings Per Diluted Common Share
MINNEAPOLIS–(BUSINESS WIRE)– U.S. Bancorp (NYSE: USB) today reported net income of $669 million for the first quarter of 2010, or $.34 per diluted common share. Earnings for the first quarter were driven by total net revenue of $4.3 billion, the result of strong year-over-year growth in both net interest income and fee revenue. Highlights for the first quarter of 2010 included:
Strong new lending activity of $36.5 billion during the first quarter including:
$6.6 billion of new commercial and commercial real estate commitments
$14.6 billion of commercial and commercial real estate commitment renewals
$2.0 billion of lines related to new credit card accounts
$13.3 billion of mortgage production and other retail originations
Significant growth in average deposits of 13.7 percent (4.5 percent excluding acquisitions) over the first quarter of 2009, including:
5.5 percent growth in average noninterest-bearing deposits
40.7 percent growth in average total savings deposits
Solid growth in total net revenue of 11.3 percent over the first quarter of 2009 (6.7 percent excluding the impact of net securities losses)
Net interest income growth of 14.7 percent over the first quarter of 2009, driven by a 5.7 percent increase in average earning assets and growth in lower cost core deposit funding
Net interest margin of 3.90 percent for the first quarter of 2010, compared with 3.59 percent in the first quarter of 2009 (and 3.83 percent in the fourth quarter of 2009)
Capital generation continues to strengthen capital position; ratios at March 31, 2010:
Tier 1 capital ratio of 9.9 percent
Total risk-based capital ratio of 13.2 percent
Tier 1 common equity ratio of 7.1 percent
Here are a few things I found as I start putting together stories this week:
– Chocolate Necessities is planning for an early-May opening of its new retail spot on Cornwall Avenue in Bellingham, (near the Pickford Cinema) according to Owner and Chocolatier Kevin Buck.
– There’s a new mill coming to Bellingham that specializes in making organic chicken feed. It’s called Scratch & Peck and they hope to be open at 3883 Hammer Drive in the next six weeks.
– Also going through the building permit process is Blue Whale Chemical, which manufactures hand and dish soap. The business will be at 4058 Hammer Drive, suite 103.
It’s the eighth bank shut down today. City Bank had eight branches in the Seattle area, none in Whatcom County. Estimated cost to the FDIC: $323.4 million. Here’s a press release from the Washington State Department of Financial Institutions:
Olympia – The Washington Department of Financial Institutions (DFI) closed City Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of City Bank.
The FDIC immediately entered into a purchase and assumption agreement with Whidbey Island Bank, headquartered in Oak Harbor, Wash. Whidbey Island Bank will assume all deposits and certain assets of City Bank, except certain brokered deposits, which will be paid out by the FDIC.
“City Bank’s capital has been depleted by large loan losses and resultant loan loss reserve provisions associated with its construction loan portfolio,” Brad Williamson, Director of DFI’s Division of Banks explained.
“These are exceptionally challenging economic times for those community banks focused on commercial real estate land acquisition and construction lending,” DFI Director Scott Jarvis said. “Any time DFI closes a bank it is a sad event. We are very pleased, however, to see this bank acquired by Whidbey Island Bank — another Washington State chartered bank with strong community ties and a 50-year history of serving the banking needs of Washington businesses and residents.”
City Bank, headquartered in Lynnwood, Wash. has branches located in Snohomish and King counties. All will be assumed by Whidbey Island Bank. All eight of City Bank’s drive-up locations will open tomorrow as Whidbey Island Bank branches for normal Saturday banking hours. All locations including the main office will reopen on Monday, April 19.
Throughout the weekend and transition, City 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 Dec. 31, 2009, City Bank had total assets of $1,129,154,000 and total deposits of $1,029,494,000.
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 also offers answers to frequently asked questions for bank business loan customers in turbulent times at http://dfi.wa.gov/banks/business-loan-faqs.htm.
Tamalpais Bank of San Rafael, Calif. was shut down, then taken over by Union Bank of San Francisco. Tamalpais Bank had seven branches. Estimated cost to the FDIC: $81.1 million. That’s number 7 for today, 49th of the year.