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Two Colorado banks closed today

Two banks were closed today in Colorado by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corp. as receiver for both of them.

The banks closed were Colorado Capital Bank in Castle Rock and Signature Bank in Windsor.

To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, N.C.,  to assume all of the deposits of Colorado Capital Bank.

The seven branches of Colorado Capital Bank will reopen on Monday as branches of First-Citizens Bank & Trust Company. Depositors of Colorado Capital Bank will automatically become depositors of First-Citizens Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.

Customers of Colorado Capital Bank should continue to use their existing branch until they receive notice from First-Citizens Bank & Trust Co.that it has completed systems changes to allow other First-Citizens Bank & Trust branches to process their accounts as well.

This evening and over the weekend, depositors of Colorado Capital Bank 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.

Castle Rock bank had $717.5 million in assets

As of March 31, 2011, Colorado Capital Bank had approximately $717.5 million in total assets and $672.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase essentially all of the assets.

The FDIC and First-Citizens Bank & Trust Company entered into a loss-share transaction on $580.0 million of Colorado Capital Bank’s assets. First-Citizens Bank & Trust Co. will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $283.8 million. Compared to other alternatives, First-Citizens Bank & Trust Company’s acquisition was the least costly resolution for the FDIC’s DIF. Colorado Capital Bank is the 50th FDIC-insured institution to fail in the nation this year, and the third in Colorado. The last FDIC-insured institution closed in the state was FirsTier Bank, Louisville, on January 28, 2011.

Point West taking over Signature in Windsor

As far as the much-smaller Signature Bank in Windsor, to protect the depositors the FDIC entered FDIC entered into a purchase and assumption agreement with Points West Community Bank, in Julesburg, to assume all of the deposits of Signature Bank.

The three branches of Signature Bank will re-open during normal business hours as branches of Points West Community Bank. Depositors of Signature Bank will automatically become depositors of Points West Community Bank.   As with Colorado Capital Bank in Castle Rock, deposits will continue to be insured by the FDIC, so as with Colorado Capital Bank in Castle Rock, there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Signature Bank should continue to use their existing branch until they receive notice from Points West Community Bank that it has completed systems changes to allow other Points West Community Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Signature Bank 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 March 31, Signature Bank had approximately $66.7 million in total assets and $64.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, Points West Community Bank agreed to purchase essentially all of the assets.

Customers with questions should call the FDIC toll-free at 1-800-517-1843. The phone number will be operational this evening until 9:00 p.m., Mountain Daylight Time on Saturday from 9:00 a.m. to 6:00 p.m., MDT; on Sunday from noon to 6:00 p.m., MDT; and thereafter from 8:00 a.m. to 8:00 p.m., MDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/signaturebank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $22.3 million. Compared to other alternatives, Points West Community Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Signature Bank is the 51st FDIC-insured institution to fail in the nation this year, and the 4th in Colorado.

Contact John Rebchook at JRCHOOK@gmail.com

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