Miami foreclosure lists have contributed to the collapse of one more Florida bank, the Republic Federal Bank in Miami, bringing the total number of Florida banks that collapsed due to the unbearable weight of bad commercial and residential real estate loans to 13 this year.
The Federal Deposit Insurance Corporation closed the bank to protect the remaining assets and depositors and chose Boca Raton-based 1st United Bank to acquire $267.1 million out of the total assets and deposits of Republic, totaling $433 million and $352.7 million, respectively. The rest of the assets would be taken over by FDIC for eventual sale to recover some of the losses.
The FDIC and the 1st United Bank also agreed to divide between them losses on about $210 million of Republic’s loans and assets.
As of December 13, the overall total of banks that failed this year has reached 133. All of these banks succumbed to the economic downturn and to record numbers and amounts of bad commercial and residential real estate loans.
According to an online foreclosure tracking firm, the rate of entry of distressed properties into foreclosure lists in Miami has risen by 1.52 percent in November. Among major cities, Cleveland, Ohio had the highest rate increase, rising by 14.12 percent.
Prior to the collapse of Republic Federal in Florida, AmTrust Bank in Cleveland, Ohio was shuttered by banking regulators. With $20 billion in total assets and deposits, it was the fourth biggest bank in the country to fail in 2009. The collapse of AmTrust was estimated to cut down the deposit insurance reserves of the FDIC by around $2 billion.
The other banks closed at about the same time with Republic Federal were Mesa, Arizona-based Valley Capital Bank and Overland Park, Kansas-based SolutionsBank.
Valley Capital had assets totaling $40.3 million and deposits totaling 41.3 million. SolutionsBank had assets totaling $511.1 million and deposits totaling $421.3 million.
According to FDIC estimates, its total deposit insurance reserves will be reduced significantly by about $122.6 million to pay the depositors of Republic Federal, an additional $122.1 million to pay the depositors of SolutionsBank and another $7.4 million to pay the depositors of Valley Capital.
This year, the FDIC is expected to lose over $28 billion in payments to insured depositors of the 133 banks that failed this year.
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- FDIC Proposes to Spend $24 Billion Federal Funds to Address Foreclosures
- List of Fannie Mae Foreclosures and Bank Foreclosures Impact Business
- Pre-Foreclosure Listings and Foreclosed Properties Benefit Buyers
- Treasury Looks Into More Anti-Foreclosure Strategies
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