Good grief, I’m away from the computer for the weekend and stuff falls apart: Community First Bank is no more… closed by the government Friday and then re-opening today under the aegis of Home Federal Bank out of Idaho.
At least people didn’t lose any money—according to the Bulletin:
Because the bank was acquired, there won’t be any losses for Community First Bank depositors who have deposits, including those whose deposits exceed the $250,000 FDIC deposit insurance amount, according to the Department of Consumer and Business Services.
According to a department news release, Community First Bank had been experiencing critically low levels of capital, adding, “The bank’s problems resulted primarily from a heavy dependence on residential construction loans, many of which were of poorer quality and were not performing or being repaid when the economy deteriorated.”
“The boards of directors of the bank and the Bancorporation regret that, despite its best effort, the bank could not raise the capital necessary, or find a suitable merger partner or acquirer, to keep the bank operating without the intervention of its regulators,” Community First Bank President and CEO Robin Freeman said in a statement released Friday evening. “The Bank has sustained extensive losses on its loan portfolio as a result of the local economy, which is experiencing high rates of unemployment and significant declines in real estate values.”
Pretty crazy. Makes you wonder if it’s time to pull all your money out of the bank and bury it in coffee cans in the yard.