A rare mid-week bank closing from the FDIC: Western State Bank, Devils Lake, North Dakota, Assumes All of the Deposits of Central Arizona Bank, Scottsdale, Arizona <
As of March 31, 2013, Central Arizona Bank had approximately $31.6 million in total assets and $30.8 million in total deposits. … The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.6 million. … Central Arizona Bank is the 13th FDIC-insured institution to fail in the nation this year, and the second in Arizona.
This is another Capitol Bancorp controlled bank, and as “surferdude” mentioned last Saturday:
A failure of any one bank subsidiary could trigger the failure of all banking subsidiaries. Through statute referred to as Cross-Guaranty, the FDIC can demand reimbursement for the cost of a failure against any of Capitol Bancorp’s still open banking subsidiaries. To facilitate the divestitures, the FDIC has issued at least 16 Cross-Guaranty waivers. …
The FDIC has declined to comment if it will assess other banking units of Capitol Bancorp for the estimated $26.2 million cost of the failures. … Of Capitol Bancorp’s remaining bank subsidiaries, seven with aggregate assets of $1.4 billion are on the Unofficial Problem Bank List. It will be worth watching to see if the FDIC pulls the cross-guaranty trigger against any of these.
Wednesday economic releases:
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.
• At 8:30 AM, Producer Price Index for April. The consensus is for a 0.7% decrease in producer prices (0.2% increase in core).
• Also at 8:30 AM, the NY Fed Empire Manufacturing Survey for May will be released. The consensus is for a reading of 3.75, up from 3.05 in April (above zero is expansion).
• At 9:15 AM, The Fed will release Industrial Production and Capacity Utilization for April. The consensus is for a 0.2% decrease in Industrial Production in March, and for Capacity Utilization to decrease to 78.3%.
• At 10:00 AM, The May NAHB homebuilder survey. The consensus is for a reading of 43, up from 42 in April. This index has decreased recently with some builders complaining about higher costs and lack of buildable land. Any number below 50 still indicates that more builders view sales conditions as poor than good.