With most large banks having to stretch to report a profit, and with plenty of excess capacity remaining in the banking industry, you know the layoffs have to be on the way. Dozens of large banks have already announced layoffs this month, and I expect a parade of layoffs at banks through next year at least.
The first large bank failure of the year took place tonight, with the Office of Thrift Supervision closing United Western Bank, with $1.65 billion in deposits and 8 locations, based in Denver, Colorado.
North Carolina-based First-Citizens Bank & Trust Company is looking to expand its national presence by assuming the deposits and purchasing the assets.
United Western Bank had a portfolio of nearly worthless derivatives left over from its former life as a wholesale mortgage bank.
A Georgia bank failed tonight without a successor. Enterprise Banking Company, based in McDonough, Georgia, had $96 million in deposits. The FDIC created a bridge bank to allow customers to access their accounts during limited banking hours between Mondayand Wednesday. In general, the FDIC will mail checks to depositors.
Two small banks failed in the Carolinas:
- CommunitySouth Bank and Trust, based in Easley, South Carolina. Local bank CertusBank is taking over the deposits and purchasing the assets.
- The Bank of Asheville, of Asheville, North Carolina. Another North Carolina bank, First Bank, is taking over the deposits and purchasing the assets.
