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First Vietnamese American Bank, Westminster, CA with approximately $48.0 million in total assets and $47.0 million in total deposits was closed. Grandpoint Bank, Los Angeles, CA has agreed to assume all deposits excluding certain brokered deposits.
Pierce Commercial Bank, Tacoma, WA with approximately $221.1 million in total assets and $193.5 million in total deposits was closed. Heritage Bank, Olympia, WA has agreed to assume all deposits.
Western Commercial Bank, Woodland Hills, CA with approximately $98.6 million in total assets and $101.1 million in total deposits was closed. First California Bank, Westlake Village, CA has agreed to assume all deposits.
K Bank, Randallstown, MD with approximately $538.3 million in total assets and $500.1 million in total deposits was closed. Manufacturers and Traders Trust Company, Buffalo, NY has agreed to assume all deposits excluding certain brokered deposits.
First Posted: 11- 6-10 02:11 PM | Updated: 11- 6-10 02:11 PM
WASHINGTON -- Regulators shut down four more banks Friday, bringing the 2010 total to 143, topping the 140 shuttered last year and the most in a year since the savings-and-loan crisis two decades ago. ... Banks are falling as soured loans have mounted and the economy has sputtered. The wave of closings points to the lingering power of the recession more than a year after its official end.
Florida, Georgia, Illinois and California have each seen bank failures in the double digits this year. Some communities in those states are still reeling from the financial meltdown that brought an avalanche of bad loans, especially for commercial real estate.
The closures have compounded the problems in areas already straining under high unemployment, foreclosed homes and vacant malls and office buildings.
The pace of failures has accelerated as banks' losses on loans for commercial property and development have mounted. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.
The 2009 total of bank failures had been the highest annual toll since 1992, at the height of the savings and loan crisis. More than 1,000 banks went under in the savings-and-loan crisis of 1987-1992.
Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three succumbed in 2007.
The growing bank failures have sapped billions of dollars out of the FDIC's deposit insurance fund. It fell into the red last year, and its deficit stood at $15.2 billion as of June 30.
The FDIC expects the cost of resolving failed banks to total around $52 billion from 2010 through 2014.
Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. That insurance cap was made permanent in the financial overhaul law enacted in July.
The Federal Deposit Insurance Corporation reported that Gulf State Community Bank, failed early Friday evening bringing the total failures for 2010 to 148, nearly 20 more banks failures than last year at this point.
Florida Surpasses All Other States in Failures
The total number of bank failures for Florida is now up to 28 making the most failures. The Gulf State Community Bank will now be operating under the control of Centennial Bank. Centennial Bank agreed to purchase nearly all of the of Gulf State’s assets, approximately $112.1 million in total assets and $112.2 in total deposits.
Florida has had the most difficult time with these failures. The next closest state is Illinois with 12 fewer failures at 16.
SAN FRANCISCO (MarketWatch) -- One bank failure in Pennsylvania and one in Michigan brought the year's tally of failures to 151, according to the Federal Deposit Insurance Corp. Friday. Regulators closed Paramount Bank of Farmington Hills, Mich., and Earthstar Bank of Southampton, Pa. Level One Bank of Farmington Hills, Mich., will take over Paramount's $252.7 million in assets and $213.6 million in deposits; and Polonia Bank of Huntingdon Valley, Pa. will take over Earthstar's $112.6 million in assets and $104.5 million in deposits. The total cost to the FDIC deposit insurance fund is $113.1 million
Community National Bank, Lino Lakes, MN with approximately $31.6 million in total assets and $28.8 million in total deposits was closed. Farmers & Merchants Savings Bank, Manchester, IA, has agreed to assume all deposits.
First Southern Bank, Batesville, AR with approximately $191.8 million in total assets and $155.8 million in total deposits was closed. Southern Bank, Poplar Bluff, MO has agreed to assume all deposits excluding the Cede & Co. deposits.
United Americas Bank, N.A., Atlanta, GA with approximately $242.3 million in total assets and $193.8 million in total deposits was closed. State Bank and Trust Company, Macon, GA has agreed to assume all deposits excluding the Cede & Co. deposits.
Appalachian Community Bank, FSB, McCaysville, GA with approximately $68.2 million in total assets and $76.4 million in total deposits was closed. Peoples Bank of East Tennessee, Madisonville, TN has agreed to assume all deposits excluding the Cede & Co. deposits.
Chestatee State Bank, Dawsonville, GA with approximately $244.4 million in total assets and $240.5 million in total deposits was closed. Bank of the Ozarks, Little Rock, AR has agreed to assume all deposits.
The Bank of Miami, National Association (N.A.), Coral Gables, FL with approximately $448.2 million in total assets and $374.2 million in total deposits was closed. 1st United Bank, Boca Raton, FL has agreed to assume all deposits excluding the Cede & Co. deposits.
This year ended with 157 bank closures which was 17 more than failed last year. The number bank failures grew considerably when the financial crisis began in 2008. The number of failures went from 3 in 2007 to 25 in 2008. It's hard for me to remember the days before 2008 when bank failures were rare.
Depositors with large savings have a little less to worry about in terms of bank failures. The FDIC $250K coverage limit became permanent when the Dodd-Frank Wall Street Reform and Consumer Protection Act became law in July. This same coverage limit also applies to NCUA-insured credit unions.
The higher coverage limit was nice, but it didn't make a difference for the vast majority of bank failures this year. In these cases the FDIC was able to find buyers for the failed banks that assumed all regular deposits.
Large Banks That Failed
One thing that changed quite a bit from 2009 was that most of this year's failures were small banks with assets under $1 billion. In 2009 we had large regional banks like Colonial, Guaranty and BankUnited that failed. All had assets over $12 billion. The largest bank that failed in 2010 was Westernbank Puerto Rico which had $11.94 billion in assets. The largest bank based on the mainland that failed was Amcore Bank, N.A. which had $3.8 billion in assets. It's interesting to note that Puerto Rico had both the largest and second largest bank failure of 2010. R-G Premier Bank of Puerto Rico which had $5.92 billion was the second largest. The three Puerto Rican bank failures cost the FDIC Deposit Insurance Fund (DIF) an estimated $5.28 billion.
Below is a list of all the banks with at least $1 billion in assets that failed in 2010. The list is sorted by size. The total number of these banks is 23. As I was making the list I noticed the vast majority of these failures occurred in the first half of the year. Only 4 banks with at least $1 billion in assets failed in the second half of the year.
1. Westernbank Puerto Rico, Mayaguez, PR - $11.94 billion
2. R-G Premier Bank of Puerto Rico, Hato Rey, PR - $5.92 billion
3. Amcore Bank, N.A., Rockford, IL - $3.8 billion
4. La Jolla Bank, FSB, La Jolla, CA - $3.6 billion
5. Frontier Bank, Everett, WA - $3.50 billion
6. Riverside National Bank of Florida, Fort Pierce, FL - $3.42 billion
7. Midwest Bank and Trust Company, Elmwood Park, IL - $3.17 billion
8. TierOne Bank, Lincoln, NE - $2.8 billion
9. Eurobank, San Juan, PR - $2.56 billion
10. First Regional Bank, Los Angeles, CA - $2.18 billion
11. ShoreBank, Chicago, IL - $2.16 billion
12. CF Bancorp, Port Huron, MI - $1.65 billion
13. Hillcrest Bank, Overland Park, KS - $1.65 billion
14. Advanta Bank Corp., Draper, UT - $1.5 billion
15. Horizon Bank, Bellingham, WA - $1.3 billion
16. Community Bank and Trust, Cornelia, GA - $1.21 billion
17. Charter Bank, Santa Fe, NM - $1.2 billion
18. Broadway Bank, Chicago, IL - $1.2 billion
19. Premier Bank, Jefferson City, MO - $1.18 billion
20. City Bank, Lynnwood, WA - $1.13 billion
21. Columbia River Bank, The Dalles, OR - $1.1 billion
22. Crescent Bank and Trust Company, Jasper, GA - $1.01 billion
23. Appalachian Community Bank, Ellijay, GA - $1.01 billion
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