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Thread: MidFirst sweeps up failed bank

  1. #1

    Default MidFirst sweeps up failed bank

    Nice to see....Great sign for the bank especially given the fact most of their income comes from mortgage servicing...Looks like they will have over 30 branches in the Phoenix area before too long

    Community Bank of Arizona shut down | State News | eastvalleytribune.com

    Community Bank of Arizona in Phoenix was closed Friday by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into an agreement with MidFirst Bank, based in Oklahoma City, Okla., to assume the deposits of Community Bank of Arizona.

    The four branches of Community Bank of Arizona will reopen on Monday as branches of MidFirst Bank. Depositors of Community Bank of Arizona will automatically become depositors of MidFirst Bank. Deposits 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 MidFirst Bank can fully integrate the deposit records of Community Bank of Arizona.

    Over the weekend, depositors of Community Bank of Arizona 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.

    As of June 30, 2009, Community Bank of Arizona had total assets of $158.5 million and total deposits of approximately $143.8 million. In addition to assuming all of the deposits of the failed bank, MidFirst Bank agreed to purchase approximately $125.5 million of assets. The FDIC will retain the remaining assets for later disposition.

    Customers who have questions about the closing can call the FDIC toll-free at (800) 913-3058 or visit the FDIC's Web site at FDIC: Failed Bank Information - Bank Closing Information for Community Bank of Arizona, Phoenix, AZ.

    Community Bank of Arizona is the 76th FDIC-insured institution to fail in the nation this year, and the first in Arizona. The last FDIC-insured institution to be closed in the state was NextBank in Phoenix, on February 7, 2002.

  2. #2

    Default Re: MidFirst sweeps up failed bank

    I guess I should have said banks

    PHOENIX – Jeff Lowe, Arizona market president of MidFirst Bank, announced today that MidFirst, the largest privately held bank in Arizona, has agreed to acquire the assets and deposits of Community Bank of Arizona and Union Bank from the FDIC receivers. The Community Bank of Arizona and Union Bank were declared insolvent and the FDIC was assigned as receiver for each failed institution. The transaction adds 5 banking centers to MidFirst Bank’s growing Valley network. By year end, MidFirst will have over 20 locations in Arizona including these sites.

  3. #3

    Default Re: MidFirst sweeps up failed bank

    MidFirst is the biggest privately held bank in Az...Interesting. Growth.

    Union Bank-its gotta been run by thugs to have half of its loans be junk.
    -----------------------

    From the FDIC: MidFirst Bank, Oklahoma City, Oklahoma, Assumes All of the Deposits of Union Bank, National Association, Gilbert, Arizona

    Union Bank, National Association, Gilbert, Arizona, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

    As of June 12, 2009, Union Bank, N.A. had total assets of $124 million and total deposits of approximately $112 million. ...

    The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $61 million. ... Union Bank, N.A. is the 75th FDIC-insured institution to fail in the nation this year, and the second in Arizona. The last FDIC-insured institution to be closed in the state was Community Bank of Arizona, Phoenix, also today.

    From the FDIC: MidFirst Bank, Oklahoma City, Oklahoma, Assumes All of the Deposits of Community Bank of Arizona, Phoenix, Arizona

    Community Bank of Arizona, Phoenix, Arizona, was closed today by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

    As of June 30, 2009, Community Bank of Arizona had total assets of $158.5 million and total deposits of approximately $143.8 million. ...

    The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $25.5 million. ... Community Bank of Arizona is the 76th FDIC-insured institution to fail in the nation this year, and the first in Arizona. The last FDIC-insured institution to be closed in the state was NextBank, Phoenix, on February 7, 2002.
    ---
    from FDIC

  4. Default Re: MidFirst sweeps up failed bank

    Good to see MidFirst growing. Hopefully they will need a new tower soon.
    Don't Edmond My Downtown

  5. #5

    Default Re: MidFirst sweeps up failed bank

    Had the taxpayers not been burdened with these failing banks, the good banks (like MidFirst) would have bailed out the bad banks in the most efficient way for both parties all while keeping the taxpayers free and clear.

  6. #6

    Default Re: MidFirst sweeps up failed bank

    Shocked you could find a way to gripe even on this thread Luke

    Most of these would probably not be acquired w/o the FDIC assuming a decent amount of the cost

  7. #7

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by Easy180 View Post
    Shocked you could find a way to gripe even on this thread Luke

    Most of these would probably not be acquired w/o the FDIC assuming a decent amount of the cost
    Gripe?

    Seems like common sense to me.

  8. #8

    Default Re: MidFirst sweeps up failed bank

    Yeah, I'm going to have to agree with Luke on this one. The Feds should have let the bad banks fail.

  9. #9

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by Luke View Post
    Had the taxpayers not been burdened with these failing banks, the good banks (like MidFirst) would have bailed out the bad banks in the most efficient way for both parties all while keeping the taxpayers free and clear.
    Glad someone else gets it.

  10. #10

    Default Re: MidFirst sweeps up failed bank

    The Feds should have let the bad banks fail.
    I agree with this in theory, but I don't think we have the stomach for it... politically or economically. Even many solid banks would not have wanted the toxic assets and credit markets would be even worse than they still are. I think in the long run, we would have been much better off, but it would have taken years. Given that people freak when the feds raise rates to reflect actual risk, I don't think people would have the guts to weather the 5-10 years it would take for markets to open back up as even good banks struggled to find the capital to keep going.

  11. #11

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by BDP View Post
    I think in the long run, we would have been much better off, but it would have taken years. Given that people freak when the feds raise rates to reflect actual risk, I don't think people would have the guts to weather the 5-10 years it would take for markets to open back up as even good banks struggled to find the capital to keep going.
    If the banks would have been able to crash quickly, I think we would have turned it around quicker. "Rescuing" a failed system by going further into debt arguably extends the length of this downward slump.

  12. #12

    Default Re: MidFirst sweeps up failed bank

    Yeah, we can do all the what ifs and what could have been, but we'll never know. Crashing quickly could very well have been the total undoing of the system. It's when they fail all at once that mitigation is warranted and that's what we were facing. I think all we can do now is try and put into place a better system geared towards prevention and that does not favor the "too big to fail" mantra. For much of the 2000s there was a total disconnect between cost of capital and risk of capital, and that led to recklessness and negligence. You either regulate it stronger to offset the risk of cheap cash, or you raise the cost of capital to reflect the greater risk of unregulated credit markets. Instead, we had no good regulation and cheap money that, as usual, found its way to bad assets.

    When capital is not properly valued, you get a booms and busts and it adjusts up and down. We did it in the 90s with venture capital in the tech sector and we did it in the 2000s with the mortgage and housing markets. Yet, everyone's "solution" to slow or slowing economies is cheap unregulated capital. That's fine, but kiss constant growth goodbye and get used to periods of inflated wealth and easy capital, followed by long periods of unemployment and frozen credit markets. That's really what free markets look like under a microscope. The problem is that people don't seem to want better regulation or tighter credit markets. They want this "boom and bail out" system, if for nothing else, because they don't want to give up the boom. Then they get angry when they have to pay for the boom, either through a tax funded bail out, or through losing their house and job until the market "corrects".

  13. Default Re: MidFirst sweeps up failed bank

    Few people realize how close the system came to crashing last October. Had the government just stepped back and let it all happen, we WOULD have had a new depression on our hands - not just a steep recession. Instead of 10% unemployment, picture 30-40% or more. Picture economies worldwide crashing with worldwide depression. Think about a total lack of credit. Good can't be imported, goods can't be exported, oil and gas to run your car or heat homes in the NE can't be imported because there is no credit. Those who say we should ahve just let the banks fail have no idea the economic cataclysm that would have caused - not just here but across the world.

  14. #14

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by jbrown84 View Post
    Good to see MidFirst growing. Hopefully they will need a new tower soon.
    I wish they would and it would be little bit taller then the Devon tower, that would be awesome.

  15. Default Re: MidFirst sweeps up failed bank

    Out of curiosity, what happens to the customer's savings when banks fail and no other bank bails them out?
    " You've Been Thunder Struck ! "

  16. #16

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by theparkman81 View Post
    I wish they would and it would be little bit taller then the Devon tower, that would be awesome.
    I have a good friend that is a higher up in Midfirst and I asked him about that and he said there are no plans to in the near future. They are not completely busting at the seams yet so there is no need for it.

  17. #17

    Default Re: MidFirst sweeps up failed bank

    I would think it could be a possibility within a decade...Will have a pretty solid presence in the Phoenix market...Should payoff handsomely when the economy starts cooking again...Couple that with a stabilized housing market for their massive mortgage servicing biz and they will be flush with cash and out of room

  18. #18

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by mugofbeer View Post
    Few people realize how close the system came to crashing last October. Had the government just stepped back and let it all happen, we WOULD have had a new depression on our hands - not just a steep recession. Instead of 10% unemployment, picture 30-40% or more. Picture economies worldwide crashing with worldwide depression. Think about a total lack of credit. Good can't be imported, goods can't be exported, oil and gas to run your car or heat homes in the NE can't be imported because there is no credit. Those who say we should ahve just let the banks fail have no idea the economic cataclysm that would have caused - not just here but across the world.
    I agree with you, and I'm glad to see our worthless Government finally do something right. Can you imagine how screwed-up this banking issue would have been if the USPS had got involved?

  19. Default Re: MidFirst sweeps up failed bank

    It is also funny how many seem to forget that a good chunk of that bank bail out money has already been repaid - I want to say over half.

  20. Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by Karried View Post
    Out of curiosity, what happens to the customer's savings when banks fail and no other bank bails them out?
    The FDIC closes the bank and pays off anyone who had funds at or under $250,000 on deposit. There are ways you can have more but I would direct you to the FDIC for that. Its actually a pretty orderly system when they have to close a bank. Payoff is usually within a couple of weeks.

  21. #21

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by venture79 View Post
    It is also funny how many seem to forget that a good chunk of that bank bail out money has already been repaid - I want to say over half.
    Yeah, with a nice profit also.

  22. #22

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by venture79 View Post
    It is also funny how many seem to forget that a good chunk of that bank bail out money has already been repaid - I want to say over half.
    Hogwash, that can't be right, our Government can't do anything right, so I don't believe you.

  23. #23

    Default Re: MidFirst sweeps up failed bank

    I'd be curious to read about these bailouts being repaid. Any links?

  24. #24

    Default Re: MidFirst sweeps up failed bank

    Quote Originally Posted by Luke View Post
    Had the taxpayers not been burdened with these failing banks, the good banks (like MidFirst) would have bailed out the bad banks in the most efficient way for both parties all while keeping the taxpayers free and clear.
    Oversimplification.

    Private banks did not have enough to overcome 30 trillion in toxic assets.

  25. #25

    Default Re: MidFirst sweeps up failed bank

    Some of you people should actually talk to someone in banking or finance before extending your rear ends on message boards. Ask them what was happening last August and September.

    Whoever the poster is that said many banks have already repaid bailout money is correct. With interest.

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