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Th e M Rep o RT | 45 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SERVICING Department LocaL eDition Banks in maryland and illinois close Tally of failed fdiC- insured insTiTuTions in 2014 rises To 16. MARYLAND // After nearly three months without a failure, another FDIC-insured institution went down in October. The Office of the Commissioner of Financial Regulation in Maryland shut down NBRS Financial, based in Rising Sun, appointing FDIC as receiver, according to dual releases from both agencies. Chartered as a national bank in 1880, NBRS converted to a Maryland charter in 2002. Following the financial crisis of the last decade, the bank endured years of losses from nonperforming assets and was never able to find enough capital to return to sound condition, according to Acting Commissioner Gordon Cooley of the state's financial regulation office. Despite the bank's collapse— Maryland's second so far this year—Cooley said "the state banking system remains safe and sound." To protect depositors of the failed institution, FDIC announced a purchase and assumption agree- ment with Howard Bank, based in Ellicott City, Maryland. In addition to assuming all of NBRS' estimated $183.1 million in deposits, Howard Bank purchased essentially all of its $188.2 million in assets. All of NBRS' five branches, includ- ing four in Maryland and one in Pennsylvania, reopened under the Howard Bank name. "Howard Bank has demonstrated strong leadership and commit- ment to the residents of Central Maryland," Cooley said. "Nowhere is this commitment more evident than Howard Bank being the first Maryland-chartered bank to assume deposits and purchase assets of a closed local bank from the FDIC." FDIC estimates its deposit insur- ance fund will take a hit of $24.3 million as a result of NBRS' closing. A week after the Maryland collapse, federal regulators an- nounced the closure of yet another government-insured bank, bringing the year-to-date tally to 16. The Office of the Comptroller of the Currency (OCC) announced the shuttering of the National Republic Bank of Chicago, appoint- ing FDIC as receiver. As of the end of Q2, National Republic Bank had approximately $915.3 million in total deposits and $954.4 million in assets. To protect depositors, FDIC arranged a purchase and assumption agree- ment with Dallas-based State Bank of Texas, which took on all of National Republic Bank's deposits and nearly two-thirds of its assets. FDIC retained the remaining assets for disposition in the future. The shutdown came months after OCC ordered the bank to dismiss both its chairman/CEO and president as it slipped into an undercapitalized position. OCC also directed National Republic Bank to cooperate with regulators and make preparations to mini- mize the hit to FDIC's insurance fund in the event of its closure. FDIC estimates the cost of National Republic Bank's collapse to be $111.6 million. National Republic Bank marks Illinois' fifth bank failure so far this year, making the state, by far, the most active for institutional closings, three of which were in the Chicago area. These latest collapses follow a quiet period after what had been an active summer for FDIC. Last year, the agency announced 24 bank closings, 22 of which had already occurred by this time. Wingspan receives capital infusion; names new President firm reCeives mulTi- million dollar finanCial boosT from sToCkholders. TEXAS // Wingspan Portfolio Advisors, a mortgage services firm headquartered in Dallas, appointed a new president following a multi-million dollar capital infusion from its stockholder investor group in late October. The news followed an an- nouncement the very same week that insurance claims manage- ment firm Dimont & Associates, which Wingspan acquired in May 2013, had broken away as an independent company after re- ceiving capital from institutional investors. Wingspan promoted its EVP of national operations, Jason Spooner, to the position of presi- dent. Spooner has 22 years' experi- ence in the mortgage industry, including leadership roles at Bank of America, SunTrust, and Wells Fargo. He joined Wingspan in 2012 to manage national opera- tions and will now also oversee the company's daily operations as president. In his new role, Spooner suc- ceeds founder and CEO Steven Horne. Contrary to recent specu- lation that the company had lost faith in Horne's decision-making abilities, Wingspan announced that it is retaining Horne in a senior adviser role. With the divestiture of Dimont & Associates and the addition of new capital, Horne says the com- pany is now debt-free. "The transaction will give Wingspan a stronger financial foundation than we have ever had and further enhances our ability to deliver exceptional service to our clients," Horne said. "As the com- pany's founder, I am excited by the opportunities ahead for Wingspan." While acknowledging that Wingspan has "experienced a fair degree of turbulence" with the industry's shift out of the default crisis, Horne added that the com- pany has made moves to diversify its services and align its workforce to the new environment. "With the closing of this strate- gic transaction, we have secured the financial support we need to continue as the leader in compo- nent servicing and outsourcing solutions," he said. Spooner echoed Horne's optimism. "With our new leadership team and a capital infusion from our stockholders, we are now in an even stronger position to meet the needs of our clients going forward," Spooner said. "Our operational excellence, culture of compliance, and true subject matter expertise will enable Wingspan to better serve our clients as the industry continues to rapidly evolve." SERVICING