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Friday, January 30, 2009

2009 Bank Failure #4: MagnetBank, Salt Lake City, Utah

by Calculated Risk on 1/30/2009 05:13:00 PM

Note: DCRogers points out in the comments that this is mostly an Atlanta area bank. From the Atlanta Business Chronicle in Nov 2008: Troubled Magnet Bank looking to raise capital

... a cease-and-desist order jointly issued Oct. 1 by the Federal Deposit Insurance Corp. ... The Salt Lake City-based bank was founded by an Atlanta investor group and retains much of its operations in Atlanta and Raleigh, N.C., offices. ... Magnet opened in 2005 and grew as home construction lending exploded.
From the FDIC: FDIC Approves the Payout of the Insured Deposits of MagnetBank, Salt Lake City, Utah
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of MagnetBank, Salt Lake City, Utah. The bank was closed today by the Utah Department of Financial Institutions and the FDIC was named receiver.

After an extensive marketing process, the FDIC was unable to find another financial institution to take over the banking operations of MagnetBank. ...

MagnetBank, as of December 2, 2008, had total assets of $292.9 million and total deposits of $282.8 million. It is estimated that the bank did not have any uninsured funds.
MagnetBank is the fourth FDIC-insured institution to fail this year and the first in Utah since Bank of Ephraim, was closed on June 25, 2004.
It is Friday. Probably more to come ...

Update: Friday Failure Haiku

Magnet Bank, Utah
Failure on Friday is here
Their loss is ours now.

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