Closed Friday, April 10, 2009 · Greeley, Weld County, Colorado
New Frontier Bank
No bank took over New Frontier Bank's deposits: the FDIC paid insured depositors directly. Its estimated cost to the Deposit Insurance Fund makes it the 35th-costliest failure on FDIC record since 1934. The estimated loss came to 52% of its assets, one of the 30 highest ratios among the 583 failures since 2000.
On the books, 2001 to 2009
Total assets peaked at $2.0 billion in the second quarter of 2008 and were 13% lower at the final report. In the three years to the second quarter of 2008, its assets grew 212%. Equity capital went from 9.0% of assets in the second quarter of 2001 to 3.4% at the last report. By then 16% of its loans were 90 days or more past due or no longer accruing interest. The deepest annual loss, $98.0 million, was booked in 2009 in only part of the year.* 2009: January to March only, the last report before closing.
Size against the other 2009 failures
Total assets of each 2009 failure, log scale; New Frontier Bank in red.
By assets it ranked 18th of the 140 failures in 2009. Of the 98 failed banks on record in Colorado since 1934, it ranks third by size. Across the failures of 2009, the median estimated loss came to 27% of assets. In the size ranking of that year, just above it was Peoples First Community Bank of Panama City, Florida ($1.8 billion, loss 33% of assets); just below, County Bank of Merced, California ($1.7 billion, loss 3.6% of assets). Every 2009 failure in the explorer.
The only other bank closed that day was Cape Fear Bank of Wilmington, North Carolina.
Failures in Colorado
It was one of three banks in Colorado to fail in 2009. The previous failure there was Colorado National Bank of Colorado Springs, on March 20, 2009. The next was Southern Colorado National Bank of Pueblo, on October 2, 2009. Weld County has 4 failed banks on FDIC record since 1934. The others: Hereford State Bank (1984), Signature Bank (2011), Bank of Choice (2011).