Osprey Flyer

Credit Union Failures: NCUA Reports 7 Credit Union Closings in 2013

The NCUA has reported 7 credit union failures, including 6 liquidations, in 2013:
Closed and Liquidated
* Lynrocten Federal Credit Union of Lynchburg, VA (May 3)
* Shiloh of Alexandria Federal Credit Union of Alexandria, VA (April 12)
* Pepsi Cola Federal Credit Union of Buena Park, CA (March 18)
* Amez United Credit Union of Detroit, MI (February 19)
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7)
Closed, Liquidated, then Merged
* I.C.E. Federal Credit Union of Inglewood, CA (March 20)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8)

Credit unions have been closed in 2013 in California 2, Michigan 1, Virginia 3, Wisconsin 1.

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

Bank Failures: FDIC Reports 10 Bank Closings in 2013

There have been 10 bank failures in 2013. Banks have been closed in Arizona, Florida 2, Georgia 2, Illinois, Kentucky, Minnesota, North Carolina, and Washington.

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois have accounted for 50% of 2013 bank failures (5 of 10) and accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively – a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 29. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.

Cost of Failed Banks 2013 The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $270.1 million. The total estimated losses in 2012 were $2.47 billion.

Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Douglas County Bank; Douglasville, GA $86.4M
2 Frontier Bank, LaGrange, GA $51.6M
3 Heritage Bank of North Florida, Orange Park, FL $30.2M
4 Covenant Bank, Chicago, IL $21.8M
5 Westside Community Bank, University Place, WA $20.3M
6 Parkway Bank; Lenoir, NC $18.1M
7 Gold Canyon Bank, Gold Canyon, AZ $11.2M
8 1st Regents Bank, Andover, MN $10.5M
9 Chipola Community Bank, Marianna, FL $10.3M
0 First Federal Bank, Lexington, KY $9.7M

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Bank Failures 2013 continue with the FDIC closing 2 banks on Friday, April 26, 2013, after closing 3 last week. There now have been 10 bank failures this year. Banks have been closed in Arizona, Florida 2, Georgia 2, Illinois, Kentucky, Minnesota, North Carolina, and Washington in 2013.

#10 Douglas County Bank; Douglasville, GA
* Hamilton State Bank, Hoschton, GA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $316.5 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $86.4 million
* The last bank closed in the state had been Frontier Bank, LaGrange, on March 8, 2013

#9 Parkway Bank; Lenoir, NC
* CertusBank, NA, Easley, SC assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $108.6 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $18.1 million
* The last bank closed in the state had been Waccamaw Bank, Whiteville, on June 8, 2012

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois have accounted for 50% of 2013 bank failures (5 of 10) and accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively – a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 31. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.

Cost of Failed Banks 2013 The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $270.1 million. The total estimated losses in 2012 were $2.47 billion.

Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Douglas County Bank; Douglasville, GA $86.4M
2 Frontier Bank, LaGrange, GA $51.6M
3 Heritage Bank of North Florida, Orange Park, FL $30.2M
4 Covenant Bank, Chicago, IL $21.8M
5 Westside Community Bank, University Place, WA $20.3M
6 Parkway Bank; Lenoir, NC $18.1M
7 Gold Canyon Bank, Gold Canyon, AZ $11.2M
8 1st Regents Bank, Andover, MN $10.5M
9 Chipola Community Bank, Marianna, FL $10.3M
0 First Federal Bank, Lexington, KY $9.7M

Failed Credit Unions

The NCUA has seized 6 failed credit unions in 2013:
Closed and Liquidated
* Shiloh of Alexandria Federal Credit Union of Alexandria, VA (April 12)
* Pepsi Cola Federal Credit Union of Buena Park, CA (March 18)
* Amez United Credit Union of Detroit, MI (February 19)
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7)
Closed and Merged
* I.C.E. Federal Credit Union of Inglewood, CA (March 20)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

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Bank Failures 2013 continue with the FDIC seizing Frontier Bank, LaGrange, GA on Friday, March 8, 2013. This is the fourth bank failure of the year. Banks have now been closed in Georgia, Illinois, Minnesota, and Washington in 2013.

#4 Frontier Bank, LaGrange, GA
* HeritageBank of the South, Albany, GA assumed all of the deposits and purchased most of the assets
* As of December 31, 2012, the bank had approximately $258.8 million in total assets
* FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $51.6 million
* The last bank closed in the state had been Hometown Community Bank, Braselton, on November 16, 2012

The FDIC closed 51 banks in 2012 in the following states: Alabama 1, California 1, Florida 8, Georgia 10, Illinois 8, Indiana 1, Kansas 1, Maryland 2, Michigan 1, Minnesota 4, Missouri 4, New Jersey 1, North Carolina 1, Oklahoma 1, Pennsylvania 2, South Carolina 2, Tennessee 3.

Florida, Georgia, and Illinois accounted for 26 total or 51% of all bank failures in 2012. Florida, Georgia, and Illinois accounted for 45 total or 49% of all bank failures in 2011.

USA Failed Banks by Year Bank failures skyrocketed in 2009 and 2010 to 140 and 157, respectively – a 2-year total of 297 compared to 32 from 2004 through 2008. Bank failures in 2011 continued at a high rate of 92. The 2012 closings decreased to 51. The total 2013 closings are currently estimated at 21. The 2013 annual bank failures are extrapolated from the weeks reported and failures year-to-date.

Cost of Failed Banks 2013 The total estimated losses to the FDIC Deposit Insurance Fund for 2013 bank closures year-to-date are $104.2million. The total estimated losses in 2012 were $2.47 billion.

Losses to the Deposit Insurance Fund (DIF) in 2013 to-date:
1 Frontier Bank, LaGrange, GA $51.6M
2 Covenant Bank, Chicago, IL $21.8M
3 Westside Community Bank, University Place, WA $20.3M
4 1st Regents Bank, Andover, MN $10.5M

Failed Credit Unions

The NCUA has seized 3 credit unions in 2013:
Closed and Liquidated
* Amez United Credit Union of Detroit, MI (February 19)
* New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI (January 7)
Placed into Conservatorship
* NCP Community Development Federal Credit Union of Norfolk, VA (February 8)

The NCUA has reported satisfactory progress of 4 credit unions previously placed in conservatorship:
* Arrowhead Central Credit Union of San Bernardino, CA
* Texans Credit Union of Richardson, TX
* Keys Federal Credit Union of Key West, FL
* AEA Federal Credit Union of Yuma, AZ

The NCUA closed 17 credit unions in 2012 in the following states: California 2, Colorado 2, Kansas 1, Michigan 1, New York 2, North Carolina 1, Ohio 1, Oregon 1, Pennsylvania 1, Texas 2, Vermont 1, Wisconsin 2.

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Earnings Reviews To-Date

A list of the most recent earnings reviews for the following companies:

SalesForce (CRM) February 28, 2013
The Salesforce Anomaly: Record Earnings And Ongoing Losses
Why The Salesforce GAAP Vs. Non-GAAP Divergence?

HP (HPQ) February 21, 2013
HP Earnings Begin Long Journey Back

American International Group (AIG) February 21, 2013
AIG Weathers Storm Sandy, Posts Profit

MetLife (MET) February 13, 2013
MetLife Earnings: Where Do We Go From Here?

Cisco (CSCO) February 13, 2013
Cisco Earnings Beat: This Is How We Roll

Rackspace (RAX) February 12, 2013
Rackspace Earnings Disappoint On Record Results

Visa (V) February 6, 2013
Visa Earnings Push Higher

Baidu (BIDU) February 4, 2013
Baidu Earnings Disappoint: Revenues Up, Margins Down

Qualcomm (QCOM) January 30, 2013
Qualcomm Earnings: Life Is Good

Amazon (AMZN) January 29, 2013
Amazon Earnings: Cooler Heads Will Prevail

VMware (VMW) January 28, 2013
VMware Earnings: Down But Not Out

Microsoft (MSFT) January 24, 2013
Microsoft Earnings Review: Windows Saves the Quarter!

Apple (AAPL) January 23, 2013
Apple Earnings Review: EPS Misses on Record Revenues!

Google (GOOG) January 22, 2013
Google Earnings Review: Hopeful Signs in a Multi-Screen World

IBM (IBM) January 22, 2013
IBM Earnings Review and Charts

Intel (INTC) January 18, 2013
Intel Earnings Review: Decline Continues

Morgan Stanley (MS) January 18, 2013
Morgan Stanley Earnings Review: Up and Down They Go

Capital One Financial (COF) January 17, 2013
Capital One Earnings Review: Performance Slows

PNC Financial Services (PNC) January 17, 2013
PNC Earnings Review: Poised to Perform

Citigroup (C) January 17, 2013
Citigroup Earnings Review: Downtrend Reversed!

Bank of America (BAC) January 17, 2013
Bank of America Earnings Review: Limping Along

BNY Mellon (BK) January 16, 2013
BNY Mellon Earnings Review: Another Average Quarter

US Bancorp (USB) January 16, 2013
US Bancorp Earnings Review: Peaking Performance?

Goldman Sachs (GS) January 16, 2013
Goldman Sachs Earnings Review: Multi-Year High for Banksters!

JPMorgan Chase & Co. (JPM) January 16, 2013
JPMorgan Earnings Review: Strong Profits Continue

Wells Fargo (WFC) January 12, 2013
Wells Fargo Earnings Review: Raises the Bar Higher!

Oracle (ORCL) September 20, 2012
Oracle Earnings Review: EPS Strengthens, Revenues Weaken, Outlook Stable

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USA Bank Charge-Offs were at a 19-quarter low of 0.97% for the QE December 31, 2012. This is the lowest since the QE March 31, 2008 (0.99%). The financial crisis losses have been mostly worked off – at least the worthless credits the regulators have identified and ordered written-off.

Net Loans increased by +1.7% from the prior QE September 30, 2012. However, banks have been more risk-averse than before the 2008 – 2009 USA financial system crisis. Therefore, Loan Charge-Offs should continue to level off at a relatively lower rate or even decease further as loan underwriting standards are more conservative. The Net Charge-Off Rate is still high compared to historical rates.

USA Banks Net Charge-Off Rate by Quarter The USA Banks Net Charge-Off Rate was at a 19-quarter low of 0.97% for quarter ended December 30, 2012. The Net Charge-Off Rate peaked at 2.89% at the QE 12-31-09, during the USA financial system crisis.

USA Banks Net Charge-Off Rate by Segment For the quarter ended December 31, 2012, the Net Charge-Off Rates by segments were:
All institutions 0.97%
Credit card banks 3.55%
International banks 1.04%
Agricultural banks 0.34%
Commercial lenders 0.70%
Mortgage lenders 0.59%
Consumer lenders 1.50%
Other specialized (< $1 billion total assets) 0.64%
All other (< $1 billion total assets) 0.46%
All other (> $1 billion total assets) 0.85%

Loan Losses Improve Across All Loan Categories (FDIC Quarterly Banking Profile, February 26, 2013) Asset quality indicators continued to improve in the fourth quarter. Net charge-offs (NCOs) totaled $18.6 billion, down $7 billion (27.4 percent) from fourth quarter 2011. This is the 10th consecutive quarter that NCOs have declined. It is the lowest quarterly NCO total since fourth quarter 2007. All major loan categories showed year-over-year improvement in quarterly NCO amounts. The largest declines occurred in 1-to-4 family residential mortgages, where quarterly NCOs fell by $1.5 billion (29.3 percent), in real estate construction and development loans, where NCOs declined by $1.3 billion (62.6 percent), in credit cards, where NCOs were $1 billion (14.1 percent) lower, and in loans to commercial and industrial (C&I) borrowers, where NCOs were also $1 billion (39.7 percent) lower.

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