Default Case Studies

In this report, we demonstrate the performance of the RiskCalc™ Banks v4.0 model on government bailout banks. To demonstrate the use of the RiskCalc Banks v4.0 model, we look at the 1-year Credit Cycle Adjusted (CCA) EDF of the Bank of Cyprus, beginning January 2008. RiskCalc produces a default probability combining bank-specific financial statement information and forward-looking banking-sector-wide equity market information.

Authors: Yanruo Wang, Clara Bernard, Irina Korablev
Date: November 1, 2013
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On October 19, 2012, Excel Bank (Sedalia, MO) was closed by the Missouri Division of Finance, and the FDIC was named Receiver.

Authors: Irina Korablev & Yu (Lucy) Jiang 
Date: November 22, 2012

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On September 14, 2012, Truman Bank (St. Louis, MO) was closed by the Missouri Division of Finance, and the FDIC was named Receiver.

Authors:Irina Korablev & Yu (Lucy) Jiang 
Date: September 14, 2012

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On August 3, 2012, Waukegan Savings Bank (Waukegan, IL) was closed by the Illinois Department of Financial & Professional Regulation, and the FDIC was named Receiver.

Authors: Irina Korablev & Yu (Lucy) Jiang
Date: August 3,2012

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On July 20, 2012, First Cherokee State Bank (Woodstock, GA) was closed by the Georgia Department of Banking and Finance, and the FDIC was named Receiver.

Authors: Irina Korablev & Yu (Lucy) Jiang
Date: July 20, 2012

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On June 15, 2012, Putnam State Bank (Palatka, FL) was closed by the Florida Office of Financial Regulation, and the FDIC was named Receiver.

Authors: Irina Korablev & Yu (Lucy) Jiang 
Date: July 16, 2012

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On May 18, 2012, Alabama Trust Bank (Sylacauga, AL) was closed by the Office of the Comptroller of the Currency, and the FDIC was named Receiver.

Author: Irina Korablev & Yu(Lucy) Jiang 
Date: June 22, 2012

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On April 27, 2012, Plantation Federal Bank (Pawleys Island, SC) was closed by the Office of the Comptroller of the Currency, and the FDIC was named Receiver.

Author: Irina Korablev & Yu(Lucy) Jiang 
Date: May 17, 2012

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On March 2, 2012, Global Commerce Bank (Doraville, GA) was closed by the Georgia Department of Banking and Finance, and the FDIC was named Receiver.

Author: Irina Korablev & Yu(Lucy) Jiang 
Date: April 25, 2012

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On February 10, 2012, SCB Bank (Shelbyville, IN) was closed by the Office of the Comptroller of the Currency, and the FDIC was named Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: February 22, 2012

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On January 20, 2012, The First State Bank (Stockbridge, GA) was closed by the Georgia Department of Banking and Finance, and the FDIC was named Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: February 22, 2012

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On December 16, 2011, Western National Bank (Phoenix, AZ) was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: January 23, 2012

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On November 18, 2011, Polk County Bank (Johnston, IA) was closed by the Iowa Division of Banking, and the FDIC was named Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: December 12, 2011

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On October 21, 2011, the FDIC was appointed receiver for Community Banks of Colorado (Greenwood Village, CO) by the Board of Governors of the Federal Reserve System.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: November 15, 2011

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On October 31, 2011, MF Global Holdings Ltd filed for bankruptcy protection after making bets on European sovereign debt. The company listed debt of $39.7 billion and assets of $41 billion as of the default date.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: November 15, 2011

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On September 23, 2011, Bank of the Commonwealth (Norfolk, VA) was closed by the Virginia State Corporation Commission and the FDIC was named Receiver.

Authors: Irina Korablev and Yu Jiang
Date: September 2011

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On September 9, 2011, Innext Company Limited, a maker of testing devices used in the production of flat-panel displays, filed for bankruptcy protection with the Tokyo District Court with liabilities of 1 billion yen ($13 million).

Authors: Irina Korablev and Yu Jiang
Date: September 2011

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Bank of Whitman (Colfax, WA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of June 30, 2011, Bank of Whitman had total assets of $548.6 million and total deposits of $515.7 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank (Tacoma, Washington) to assume all of the deposits of Bank of Whitman. In addition to assuming all of the deposits of Bank of Whitman, Columbia State Bank agreed to purchase approximately $314.4 million of Bank of Whitman's assets.

Authors: Irina Korablev and Yu Jiang
Date: August 2011

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On August 15, 2011, Horizon Lines Inc, a container ship operator serving the continental US, missed the interest payment on its $330 million of convertible notes.

Authors: Irina Korablev and Yu Jiang
Date: August 2011

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Bank of Choice (Greeley, CO) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of March 31, 2011, Bank of Choice had total assets of $1.07 billion and total deposits of $924.9 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank Midwest (Kansas City, MO) to assume all of the deposits of Bank of Choice. In addition to assuming all of the deposits of Bank of Choice, Bank Midwest agreed to purchase approximately $853 million of Bank of Choice's assets.

Authors: Irina Korablev and Yu Jiang
Date: July 2011

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On July 20, 2011, the Irish Government committed to inject approximately €2.7 billion into Irish Life and Permanent PLC by July 31, 2011; the remaining €1.1 billion will be raised by the end of October 2011 via the buyback of subordinated debt at a substantial discount to the nominal value and the sale of the bank’s life assurance business, Irish Life.

Authors: Irina Korablev and Yu Jiang
Date: July 2011

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The Atlantic Bank & Trust (Charleston, SC) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of March 31, 2011, Atlantic Bank & Trust had total assets of $208.2 million and total deposits of $191.6 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company (Columbia, SC) to assume all of the deposits of Atlantic Bank & Trust. In addition to assuming all of the deposits of Atlantic Bank & Trust, First Citizens Bank and Trust Company agreed to purchase all of Atlantic Bank & Trust's assets.

Authors: Irina Korablev and Yu Jiang
Date: June 2011

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On June 27, 2011, Teltronics Inc, a provider of software and hardware for PBX switching systems, filed for Chapter 11 protection in Tampa, Florida. EDF value as of June 27, 2011: 35.00%

Authors: Irina Korablev and Yu Jiang
Date: June 2011

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On May 24, 2011, Jackson Hewitt Tax Service, a provider of tax preparation services for individuals, filed for prepackaged Chapter 11 of US bankruptcy protection in Delaware. As of January 31, 2011, the company had listed asset of $389 million and debt of $445 million.

Authors: Irina Korablev and Yu Jiang
Date: May 2011

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The First Heritage Bank (Snohomish, WA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of March 31, 2011, First Heritage Bank had total assets of $173.5 million and total deposits of $163.3 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank (Tacoma, Washington) to assume all of the deposits of First Heritage Bank. In addition to assuming all of the deposits of First Heritage Bank, Columbia State Bank agreed to purchase all First Heritage Bank's assets.

Authors: Irina Korablev and Yu Jiang
Date: May 2011

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On April 11, 2011, Sport Media Group PLC, a Manchester, UK-based publisher, appointed joint administrators of BDO LLP over itself and two of its wholly-owned subsidiaries.

Authors: Irina Korablev and Yu Jiang
Date: April 2011

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The Park Avenue Bank (Valdosta, GA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of December 31, 2010, Park Avenue Bank had total assets of $953.3 million and total deposits of $827.7 million. To protect depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks (Little Rock, Arkansas) to assume all of the deposits of Park Avenue Bank. In addition to assuming all of the deposits of Park Avenue Bank, Bank of the Ozarks agreed to purchase all of Park Avenue Bank's assets. ™

Authors: Irina Korablev and Yu Jiang
Date: April 2011

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Legacy Bank (Milwaukee, WI) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of September 30, 2010, Legacy Bank had total assets of $150.6 million and total deposits of $125.9 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust (St. Louis, MO) to assume all of the deposits of Legacy Bank. In addition to assuming all of the deposits of the Legacy Bank, Enterprise Bank & Trust agreed to purchase all of Legacy Bank's assets.

Authors: Irina Korablev and Yu Jiang
Date: March 2011

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On March 23, 2011, Geopharma Inc, a largo drug company, filed for Chapter 11 of US bankruptcy protection with listed assets of $1 million to $10 million and liabilities of $10 million to $50 million.

Authors: Irina Korablev and Yu Jiang
Date: March 2011

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American Trust Bank (Roswell, GA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of December 31, 2010,  American Trust Bank had total assets of $238.2 million and total deposits of $222.2  million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Renasant Bank (Tupelo, MO) to assume all of the deposits of American Trust Bank. In addition to assuming all of the deposits of the American  Trust Bank, Renasant Bank agreed to purchase approximately $147.4 million of American Trust Bank's assets.

Authors: Irina Korablev and Yu Jiang
Date: February 2011

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