One Bank and Two Credit Unions Closed by Regulators
by Ken Tumin
After four weeks without any bank failures, one small bank failed this Friday. With the holidays fast approaching, this might be the last one for the year. The failed bank was Community Bank of the Ozarks in Sunrise Beach, Missouri. This is the 51st bank to fail in the nation this year, and it’s the fourth to fail in Missouri. At this time last year there had been 92 bank failures, and by this time in 2010 there had been 157 bank failures.
The closure of Community Bank of the Ozarks was typical with the FDIC arranging for another bank to assume all deposits. The FDIC had the following message in its Q&As:
No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to Bank of Sullivan.
CD customers at Community Bank of the Ozarks will have to wait to see what happens with the rates. The FDIC has its typical message about interest rates in its Q&As:
Interest on deposits accrued through close of business on December 14, 2012 will be paid at your same rate. Community Bank of the Ozarks’ rates will be reviewed by Bank of Sullivan and may be lowered; however, you will be notified in writing of any changes. You may withdraw funds from any transferred account, regardless of whether your interest rate changes, without early withdrawal penalty until you enter into a new deposit agreement with Bank of Sullivan.
Credit union failures have been more common than bank failures in the last month. One credit union failed this week, and one failed in late November. Both were small credit unions. The total number of credit union failures for the year is now 13. One of those 13 was privately insured by the ASI.
Below is the summary of the recent bank and credit union failures: