Former Viking TE was Chairman Bank that Failed in Minnesota

It has been over a month, exactly the last bank to fail was Waukegan Savings Bank, Waukegan, Illinois on August 3. Joining the list was First Commercial Bank, Bloomington, Minnesota, which was closed on September 7, 2012. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank & Trust Company, Louisville, Kentucky, to assume all of the deposits of First Commercial Bank16 2006 25 2009.

Founded July 15, 1999, the bank had 20 full time employees June 30, 2012. It had a high of 25 full time employees at its sole office in 2009.

Former Minnesota Viking Stu Voigt formerly was the chairman of the board at First Commercial from August, 2003 to when he was fired by the board of directors on September 18, 2008.

(Voigt, 2012)

January, 2012 the Federal Deposit Insurance Corp. filed papers seeking to fine Voigt $125,000 for a “pattern of misconduct” and ban him from banking that led to a $788,000 charge-off by the Bloomington bank and a reported financial benefit for Voigt.

PDF: FDIC

July 28, 2012 the StarTribune.com reported the FDIC ended up fining Voigt $15,000 as part of a consent agreement in the matter and at age 64 he agreed to stay out of the banking industry. Voigt did not admit any wrongdoing. It was a settlement, which his attorney said avoided a costly lawsuit
http://www.startribune.com/sports/vikings/164098196.html#

Separately, Voigt is being sued in a federal lawsuit in Minnesota by his former teammate Ron Yary and three other investors regarding real estate investments with companies he was involved with. The alleged activity took place near the height of the real estate boom when Voigt was chairman of First Commercial Bank. The plaintiffs claim they lost over $1 million, while Vogt says he lost more than $2 million himself in the same investments.
http://www.bizjournals.com/twincities/news/2011/03/24/ex-vikes-yary-voigt-face-off-in-court.html

Voigt was well known in the area not only as a former Viking football player, but he was the color commentator for the Vikings. Wikipedia reports, “In 1970, Voigt was drafted by the Minnesota Vikings and played in three Super Bowls before retiring after the 1980 season. From 1981 to 1989, he was a color commentator on Vikings radio broadcasts on Vikings radio broadcasts from 1981 to 1989, after retiring following the 1980 season. Here is his page form the Viking website:

http://www.vikings.com/50/greatest-vikings/player-profiles/stu-voigt.html

Looking at the FDIC numbers, bank equity climbed to $30.4 million In 2008 under Voigt rein as chairman, and after he left. It fell to $3.1 million June 30, 2012. His last term saw the banks last
Profit as it fell to losses each following year from $5.8 million, 2009, $13 million, 2010, $9.8 million 2011, to the first half of 2012: $3.6

Perhaps under Voigt watch the loans were made as his last year saw $2.6 million in charge offs, mostly in commercial loans. The following years it was construction and land development, residential 1st and 2nd mortgages with overall charge offs of $7.9 million, 2009, $13.1 million, 2010, $8.6 million, 2011, and $3.5 million the first half of this year. Tier 1 risk-based capital ratio: 1.81%

(in millions, unless otherwise)

Charge Offs
2006 $225,000 ($292,000 commercial/industrial, $62,000 construction, $5,000 indiv.)
2007 $664,000 ($263, 0000 commercial, $279,000 multi-family, $168,000 1-4 family, -$45,000 indiv.)
2008 $2.6 ($1.5 commercial, $591,000 1-4 family, $520 construction, $6 credit cards)
2009 $7.9 ($4.9 construction, $1.0 individuals, $964,000 1-4 family, $581,000 commercial, $201,000 multi-family, $157,000 nonfarm/nonres.)
2010 $13.1 ($6.7 construction, $2.6 1-4 family, $1.7 nonfarm/nonres.,$1.5 commercial, $2.6 1-4 family, $41,000 other loans, $26,000 indiv.)
2011 $8.6 ($2.7 nonfarm/nonres.,$2.0 construction, $1.6 commercial, $1.5 1-4 family, $703,000 multifamily.)
6/30 $3.5 ($1.8 commercial/industrial, $862,000 nonfarm/nonres., $564, construction/land dev., $246,000 1-4 family.)

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.

FDIC Filings:

(in millions, unless otherwise)

Net Equity
2006 $13.2
2007 $26.4
2008 $30.4
2009 $29.5
2010 $16.5
2011 $6.7
6/30 $3,1

Profit
2006 $3.6
2007 $3.4
2008 $225,000
2009 -$5.8
2010 -$13.0
2011 -$9.8
6/30 -$3.6

Non-Current Loans
2006 $2.5
2007 $3.9
2008 $10.7
2009 $25.5
2010 $21.5
2011 $23.3
6/30 $24.8

Republic Bancorp, Louisville, Kentucky stated it is press release it acquired First Commercial’s loans and repossessed real estate with a book value of about $194 million, at a discount of $79 million. The bank did not pay a deposit premium and did not acquire any assets or liabilities of FCB’s parent holding company, Commercial Bancshares, Inc. or any of its privately held stock

As of June 30, 2012, First Commercial Bank had approximately $215.9 million in total assets and $206.8 million in total deposits. In addition to assuming all of the deposits of the First Commercial Bank, Republic Bank & Trust Company agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $63.9 million.

Republic Bancorp, Inc. (Republic) has 43 banking centers and is the parent company of Republic Bank & Trust Company (RB&T) and Republic Bank. RB&T has 34 banking centers in 12 Kentucky communities – Covington, Crestwood, Elizabethtown, Florence, Frankfort, Georgetown, Independence, Lexington, Louisville, Owensboro, Shelbyville and Shepherdsville, three banking centers in southern Indiana – Floyds Knobs, Jeffersonville and New Albany and one banking center in Franklin (Nashville), Tennessee. Republic Bank has banking centers in Hudson, Palm Harbor, Port Richey and Temple Terrace, Florida as well as Blue Ash (Cincinnati), Ohio.

http://www.snl.com/IRWebLinkX/file.aspx?IID=1018438&FID=14493549

List of Bank Failures:
http://www.fdic.gov/bank/individual/failed/banklist.html

Bank Beat:
http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm