Bradford bank fails; assets sold to M&T
Almost every Friday is failure Friday for the FDIC. This week it's Towson's Bradford Bank. The usual reassurances apply: deposits are safe up to the insured limits etc. etc. Here is the FDIC release. Now all we need is the haiku from Soylent Green is People.
Bradford Bank, Baltimore, Maryland, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Manufacturers and Traders Trust Company (M&T), Buffalo, New York, to assume all of the deposits of Bradford Bank.The nine branches of Bradford Bank will reopen on Saturday as branches of M&T. Depositors of Bradford Bank will automatically become depositors of M&T. Depositors 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 branches until M&T can fully integrate the deposit records of Bradford Bank.
This evening and over the weekend, depositors of Bradford 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.
UPDATE: As promised. SGP, who has become the poet laureate of bank failures, writes haiku for every institution seized by the federales.
Summer heat scorches
Three...four hundred...one thousand???
Bradford bank now toast.
by Soylent Green is People
As of June 30, 2009, Bradford Bank had total assets of $452 million and total deposits of approximately $383 million. In addition to assuming all of the deposits of the failed bank, M&T agreed to purchase essentially all of the failed bank's assets.The FDIC and M&T entered into a loss-share transaction on approximately $338 million of Bradford Bank's assets. M&T will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-640-2693. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/bradford-md.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $97 million. M&T's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Bradford Bank is the 82nd FDIC-insured institution to fail in the nation this year, and the second in Maryland. The last FDIC-insured institution closed in the state was Suburban Federal Savings Bank, Crofton, on January 30, 2009.
Comments
Failed Banks Total Goes to 82 in 2009 and 107 since 2008.
Today FDIC closed Bradford Bank from Maryland.
Check all the failed banks in 2009 at
http://portalseven.com/Failed-Banks-2009
Check map of failed banks at :
http://portalseven.com/Failed-Banks-Map-2009
Posted by: Pravin | August 28, 2009 6:34 PM
Not bad for a bank that received 600 million in bailout funds.Mr. Buffet and many other wealthy people are able to pick up assets on the cheap so they can get even larger and then scream "we're too big to fail".The wealthy are hooked on profits just like crack addicts are hooked on their drug of choice.
Posted by: RedBeagle | August 29, 2009 12:01 PM
I don't understand the Bradford numbers. FDIC spent 97mm and sent 60 employees to close down a bank with only 88 employees and 9 branches and 40.2mm non-performing loans? That's about 1 FDIC person for each 1 1/2 bank employee, about 11mm per branch, and almost 2 1/2 times the bad loans!! No wonder we're going broke!
Posted by: bob | September 7, 2009 3:02 PM