Two More Banks Close on Friday
April 10, 2009 by Stephen Kersey
Filed under Business
The tally for bank failures for 2009 reached 23 on Friday as Cape Fear Bank (Wilmington, NC) and New Frontier Bank (Greeley, CO) closed their doors.
Cape Fear Bank had assets of $492 million and deposits of $403 million as of March 31. First Federal Savings and Loan of Charleston will take control of all Cape Fear’s deposits. The failure will cost the Deposit Insurance Fund approximately $131 million, according to the FDIC.
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New Frontier Bank will remain open for 30 days to allow depositors to open accounts elsewhere and move their funds. Bank of the West will provided the operational management. At the end of the 30 day period, the FDIC will mail checks to all depositors who haven’t transferred or closed their accounts.
New Frontier Bank had assets of $2 billion and deposits of $1.5 million as of March 31. Its failure could cost the Deposit Insurance Fund an estimated $670 million.
The 23 bank failures this year is nearly the mark of 25 total banks failed in 2008.
Source: Wire Reports
