The koH Resources Blog, All Commercial Financing Information » Federal Deposit Insurance Corporation http://blog.kohresources.com All Commercial Financing Information Fri, 23 Jul 2010 02:33:38 +0000 en hourly 1 http://wordpress.org/?v=3.0 Goodbye Capital One http://blog.kohresources.com/goodbyecapital-one/ http://blog.kohresources.com/goodbyecapital-one/#comments Sat, 07 Nov 2009 02:11:34 +0000 braudis http://blog.kohresources.com/?p=568 Capital One Financial Corp., which bought Chevy Chase Bank earlier this year, is closing half a dozen branches of Chevy Chase Bank that were erected over the past decade in the Washington, D.C. area “to improve branch efficiency and performance, while also managing costs”.

Capital One merged Chevy Chase Bank into its charter July 30th and plans to begin converting Chevy Chase to Capital One Bank in the second half of next year. Chevy Chase Bank locations in Bethesda, Hagerstown, Laurel and Rockville will close Dec. 19, 2009. Branches in Waldorf and Bethesda are scheduled to be closed Jan. 9, 2010.

According to deposit figures released by the FDIC on June 30th, Charlotte, N.C.-based Bank of America saw a surge in local deposits and overshot Wachovia Bank, which lost deposits, to become the area’s largest bank. Bank of America’s increase was driven by growth in its retail banking business. The figures are from the FDIC’s annual survey of each branch. McLean-based Chevy Chase Bank also gained ground with deposits, surpassing Atlanta-based Sun Trust Bank to reach third place. Chevy Chase’s figures don’t include deposits held at Capital One Bank, which merged Chevy Chase into its charter after numbers were collected.

Overall, community banks did a little bit better than large banks, taking about 1 percent of local market share from Bank of America, Wachovia, SunTrust, BB, Chevy Chase, Citibank, M&T, PNC, HSBC and TD Bank, which held 80.55 percent of local deposits, down from 81.49 percent a year ago.

 So why am I telling you this? Remember my scenario of last month, what the Capital One manager said about not being able to make any adjustments in my favor because of the economy and consequent defaults which gravely effected their bottom line? Well, their bottom line was huge in the black. Don’t take my word for it, get evidence of their earnings straight from Capital One! Goodbye Capital One, there’s something new in my wallet. Hello Community Banks!

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]]> http://blog.kohresources.com/goodbyecapital-one/feed/ 21 What’s The Real Deal? http://blog.kohresources.com/what%e2%80%99s-the-real-deal/ http://blog.kohresources.com/what%e2%80%99s-the-real-deal/#comments Thu, 06 Aug 2009 22:55:46 +0000 braudis http://blog.kohresources.com/?p=261 I’ve given you straight and cold facts for a while. Some things you already know? Maybe. Maybe not. But what is the reality of it all? You’ve heard the phrase “personal reality” when it comes to individual thought. But what about collective reality? What are the “personal” realities of banks and lenders? What’s the real deal?

We know banks are failing. We know this! Big banks! Huge banks! But why? Really, why? It’s not the money! Yes, that’s what I said: it’s not the money. Money is a constant. It exists and will always have some value, period. We created it, so it exists. Anything we create, we can manipulate. So what’s the problem?

The problem is not money, it’s management. Management is the variable. This is the element that changes money. What do I mean? Just look around. For those of you who live and work in or near Cucumonga, CA., you know for sure that last month Vineyard Bank NA in Rancho Cucamonga, Calif., which had approximately $1.9 billion of assets and $1.6 billion of deposits at the end of March, CLOSED.

San Diego-based California Bank & Trust agreed to assume all deposits (except $134 million of brokered accounts) and purchase about $1.8 billion of assets. Temecula Valley Bank, Temecula, Calif.,was closed by the California Department of Financial Institutions, and its assets were assumed by Raleigh, N.C. based First-Citizens Bank and Trust Co. As of May 31, Temecula Valley Bank had total assets of $1.5 billion and total deposits of approximately $1.3 billion. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank and Trust agreed to purchase essentially all of the assets. The FDIC and First-Citizens Bank & Trust entered into a loss-share transaction on approximately $1.3 billion of Temecula Valley Bank’s assets.

BankFirst, Sioux Falls, S.D., and First Piedmont Bank, Winder, Ga., closed as well. The FDIC brokered transactions in which Grand Forks, N.D. based Alerus Financial NA took over BankFirst, and Athens, Ga. based First American Bank & Trust Co. took over First Piedmont.

So four Federal Deposit Insurance Corporation (FDIC) insured institutions were closed and the collective damage on the FDIC’s Deposit Insurance Fund was estimated at $1.09 billion. Here on the one hand you have Vineyard Bank, Temecula valley Bank, BankFirst and First Piedmont, LOSERS; and on the other you have First-Citizens Bank & Trust, Alerus Financial NA, and First American Bank & Trust, WINNERS. Why? Aren’t all those banks on the same planet?

Better yet, in the same month, the Boston office of Holliday Fenoglio Fowler secured $25 million in financing for a 10-story, 159,000-square-foot Class A office building in Boston. Completed in 1990, 101 Merrimac is currently 95% leased. Yes, 95% leased. How is that possible? Aren’t many offices going vacant all over the place? I’ll save that for another post. But what’s your opinion? What’s really our reality? What’s really their reality? Is it mind over money or money over mind? What do you think?

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