Bank #23 for '09 Fails

The 23rd bank failure for 2009 so far is New Frontier Bank of Greeley, CO. The bank was seized by federal regulators on Friday 10 April for insolvency and will be sold and reorganized in the coming days. The failure of this bank is no surprise as warnings were issued in recent months concerning its lack of capital and increasingly poor asset situation. Additional attempts at increasing capitalization that occurred in recent months proved to be inadequate and assets continued to deteriorate which overall resulted in its failure.

This is the second bank in Colorado to fail in less than a month. The 23 banks that have failed across the nation so far put bank failures to be on pace to be around 90 or more for the calendar year. 21 banks failed in the second half of 2008, as compared to just four in the first half of that year.

New Frontier Bank had additional locations in Windsor and Longmont in addition to its main downtown Greeley location and was the largest locally owned bank in the northern Front Range.

The 22nd bank failure of this year occurred earlier in the day when Wilmington NC based Cape Fear Bank was seized and shutdown by FDIC regulators.

http://www.calculatedriskblog.com/2009/04/bank-failure-23-new-frontier-bank.html

http://www.greeleytribune.com/article/20090411/NEWS/904119983/1051&ParentProfile=1001

http://www.greeleytribune.com/article/20090404/NEWS/904049985/1001

http://www.calculatedriskblog.com/2009/04/bank-failure-22-cape-fear-bank.html

http://www.fdic.gov/bank/individual/failed/banklist.html

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