trending Market Intelligence /marketintelligence/en/news-insights/trending/0Msk3CKK_vaiYWLDg9xAhg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

First CornerStone Bank becomes 1st bank to fail in Pennsylvania in 2016

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity

First CornerStone Bank becomes 1st bank to fail in Pennsylvania in 2016

The Pennsylvania Department of Banking and Securities on May6 seized King of Prussia, Pa.-based First CornerStone Bank and named the FDIC receiver in afailure estimated to cost the federal agency's deposit insurance fund $10.8million.

The FDIC, in turn, entered into a purchase and assumptionagreement with Raleigh, N.C.-based First Citizens BancShares Inc. unit ($32.05 billion) to acquire all of the deposits of the failed bank as well asessentially all of its assets. The six branches of First CornerStone Bank willreopen as branches of First-Citizens Bank & Trust Co. during normalbusiness hours. First-Citizens plans tooperate the former First CornerStone Bank as a division, according to a companystatement. Under the terms of the agreement, First-Citizens Bankhas the option to purchase any owned bank premises or to assume the leases onany or all of the banking offices.

The shuttered bank had about $103.3 million in assets,including $50.4 million in gross loans, and $101.0 million in deposits, as ofMarch 31.

In August 2014, the FDIC amended a 2010 consent order to direct First CornerStone Bank to"have and retain qualified management."

First CornerStone Bank is the third FDIC-insured institutionin the U.S. to fail so far in 2016, and the first in Pennsylvania.

Horsham, Pa.-based Vantage Point Bank was the last failed bank in thestate, and that was in February2014.

Click on the map belowto access a larger version as a PDF. To use branch analytics tools to comparemarket overlap, click here.To create custom maps, click here.