by Calculated Risk on 6/26/2009 07:28:00 PM

Metro Pacific
Local to CR, Soylent
Big Irvine implode.
Event: Horizon
Debt, Destruction, De-Leverage
A cliff dive too far.
both by Soylent Green is People
From the FDIC: Stearns Bank, National Association, St. Cloud, Minnesota, Assumes All of the Deposits of Horizon Bank, Pine City, Minnesota

Horizon Bank, Pine City, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of March 31, 2009, Horizon Bank had total assets of $87.6 million and total deposits of approximately $69.4 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $33.5 million. Stearns Bank's, N.A. acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Horizon Bank is the 43rd FDIC-insured institution to fail in the nation this year, and the first in Minnesota.

From the FDIC: Sunwest Bank, Tustin, California, Assumes All of the Deposits of MetroPacific Bank, Irvine, California

MetroPacific Bank, Irvine, California was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of June 8, 2009, MetroPacific Bank had total assets of $80 million and total deposits of approximately $73 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $29 million. Sunwest Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. MetroPacific is the 44th FDIC-insured institution to fail in the nation this year, and the fifth in California.

Four down today ...

by Calculated Risk on 6/26/2009 06:28:00 PM

Former Rebel State
Fertile soil for bank failure
Bumper crop this year.
by Soylent Green is People
From the FDIC: CharterBank, West Point, Georgia Assumes All of the Deposits of Neighborhood Community Bank, Newnan, Georgia

Neighborhood Community Bank, Newnan, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of March 31, 2009, Neighborhood Community Bank had total assets of $221.6 million and total deposits of approximately $191.3 million. ...

The FDIC and CharterBank entered into a loss-share transaction on approximately $178.5 million of Neighborhood Community Bank's assets. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66.7 million. CharterBank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Neighborhood Community Bank is the 42nd FDIC-insured institution to fail in the nation this year

Newnan ... (or "Noonan") ... for you Caddyshack fans.

by Calculated Risk on 6/26/2009 05:46:00 PM

Summer break arrives
Zero rest for the wicked,
Neither for Blair's crew.
by Soylent Green is People
From the FDIC: FDIC Approves the Payout of Insured Deposits of Community Bank of West Georgia, Villa Rica, Georgia

Community Bank of West Georgia, Villa Rica, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the Federal Deposit Insurance Corporation (FDIC) will mail checks to insured depositors for their insured funds on Monday morning, June 29th.
...
As of May 15, 2009, Community Bank of West Georgia had total assets of $199.4 million and total deposits of $182.5 million.
...
The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $85 million. Community Bank of West Georgia is the 41st FDIC-insured institution to fail in the nation this year, and the eighth in Georgia.

This is another closing without a buyer - I think the third this year.

by Calculated Risk on 6/26/2009 03:32:00 PM

From Bloomberg: JPMorgan, Citigroup Expand in ‘Jumbo’ Home Mortgages

JPMorgan resumed buying new jumbo loans made by other lenders this month, after halting purchases in March, spokesman Tom Kelly said. ... Citigroup is again offering the loans through independent mortgage brokers, spokesman Mark Rodgers said.
...
New jumbo lending, which includes refinancing as well as debt for home buyers, totaled $348 billion in 2007, before dropping to $98 billion last year as mortgage companies tightened standards, according to newsletter Inside Mortgage Finance. Jumbo lending slowed in the fourth quarter to $11 billion, or 4 percent of the mortgage market, the lowest quarterly amount since Inside Mortgage Finance started tracking that data in 1990.
...
Bank of America Corp. was the largest jumbo lender in the first quarter, with almost $9 billion in new loans, followed by Citigroup ...

More than 7 percent of prime-jumbo loans backing securities sold in 2006 and 2007 were at least 90 days late, Standard & Poor’s said yesterday.

This will help a little - but the standards are pretty tight and there more problems coming for the mid-to-high end (like Option ARM recasts and few move-up buyers).

by Calculated Risk on 6/26/2009 02:02:00 PM

Click on graph for large image.

This graph shows the Freddie Mac single family delinquency rate since January 2005.

Here is the Freddie Mac portfolio data.


From Reuters: Freddie Mac May portfolio shrank annualized 9.9 pct (ht Ron)

Freddie Mac ... said its mortgage investment portfolio shrank by an annualized 9.9 percent rate in May, while delinquencies on loans it guarantees accelerated.

The portfolio decreased to $823.4 billion, for an annualized 5.6 percent increase year to date, the McLean, Virginia-based company said in its monthly volume summary.

In May 2008, the portfolio was $770.4 billion.

Delinquencies ... jumped to 2.62 percent of its book of business in May from 2.44 percent in April and 0.86 percent in May 2008.
...
Freddie Mac said refinance-loan purchase volume was $40.3 billion in May, down from April's $43.3 billion. March's $52 billion was its largest refinance month since 2003.