The nation’s first bank failure of 2017 was located in the Northeast. Two other financial institutions to go down were further west.
On Friday, the New Jersey Department of Banking and Insurance reported that it seized and closed down Harvest Community Bank.
The state said Harvest Community
had three branches in addition to its Pennsville headquarters. There were 33 people on its payroll.
The Federal Deposit Insurance Corp. was named receiver and held a secret auction, awarding the winning bid to First-Citizens Bank & Trust Co.
— which will assume Harvest Community’s $124 million in total deposits and acquire its $126 million in total assets as of Sept. 30, 2016. Assets included $34 billion in one-to-four family loans and $29 billion in commercial real estate loans.
Harvest Community, the first FDIC-insured bank failure so far in 2017, is expected to deplete the Deposit Insurance Fund by $22 million.
Last year,
just five banks failed, fewer than eight in 2015 and the fewest since 2007 when only three bank failures were recorded.
The Michigan Department of Insurance and Financial Services appointed the National Credit Union Administration
conservator of Valley State Credit Union on Nov. 9.
The Saginaw, Michigan-based credit union was originally placed into conservatorship by the state on Aug. 17, 2016, due to unsafe and unsound practices.
Valley State has 2,925 members and $22 million in assets. It was chartered in 1955.
On Nov. 29, 2016,
First African Baptist Church Federal Credit Union was liquidated by the NCUA. The regulator said American Heritage Federal Credit Union assumed the failed credit union’s 261 members and deposits.
Assets were just $0.076 million at Sharon Hill, Pennsylvania, African Baptist Church, which was chartered in 1978.
“NCUA made the decision to liquidate First African Baptist Church Federal Credit Union after determining the credit union was insolvent with no prospect of restoring viable operations,” the agency stated.
First African Baptist Church was the 15th credit union failure recorded by Mortgage Daily in 2016. In all, the demise of 30 bank, credit union and non-bank mortgage businesses were chronicled last year.
