Banks: The Next Domino?

From the Sacramento Bee:

Sacramento-based Placer Sierra Bancshares said Thursday it will lose its largest depositor by June 2007, a loss that could cut its earnings by between 7 percent and 13 percent next year, analysts say. The bank holding company, which operates 49 branches of Placer Sierra Bank, Sacramento Commercial Bank, Bank of Lodi and two banks in Southern California, identified the depositor only as a nationwide mortgage service company that is consolidating its operations in the Midwest.

The depositor accounted for about 12.6 percent of all Placer Sierra deposits, with an average balance of between $175 million and $200 million..."These accounts are great when you get them, and they hurt when you lose them," said Frank Mercardante, Placer Sierra's chief executive officer.

Thanks to Max for the link.