Bank Failures Reach 120 For 2009 As Five More Banks Fail Last Friday

The recent rash of bank failures continues with the FDIC closing five more banks on November 6th, bringing the total number of bank failures in 2009 to 120.  Banks closed in both Georgia and California, two of the states with the most closures this year, bringing their 2009 bank failure totals to 21 and 14, respectively.

United Security Bank, Sparta, GA

The 21st bank to fail in Georgia, United Security Bank’s assets were transferred to Ameris Bank of Moultrie, GA by the FDIC in order to protect depositors. United Security Bank locations reopened on Monday as branches of Ameris Bank. As of September 14, 2009, United Security Bank had total assets of $157 million and total deposits of approximately $150 million. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58 million.

Home Federal Savings Bank, Detroit, MI

Home Federal Savings Bank’s assets were transferred to Liberty Bank and Trust Company of New Orleans, LA by the FDIC in order to protect depositors. Home Federal Savings Bank locations reopened on Monday as branches of Liberty Bank and Trust Company. As of September 24, 2009, Home Federal Savings Bank had total assets of $14.9 million and total deposits of approximately $12.8 million. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.4 million.

Prosperan Bank, Oakdale, MN

Prosperan Bank’s assets were transferred to Alerus Financial, N.A. of Grand Forks ND by the FDIC in order to protect depositors. Prosperan Bank locations reopened on Monday as branches of Alerus Financial. As of August 31, 2009, Prosperan Bank had total assets of $199.5 million and total deposits of approximately $175.6 million. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $60.1 million.

Gateway Bank of St. Louis, St. Louis, MO

Gateway Bank of St. Louis’s assets were transferred to Central Bank of Kansas City, MO by the FDIC in order to protect depositors. Gateway Bank of St. Louis locations reopened on Monday as branches of Central Bank of Kansas City. As of September 25, 2009, Prosperan Bank had total assets of $27.7 million and total deposits of approximately $27.9 million. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.2 million.

United Commercial Bank, San Francisco, CA

United Commercial Bank’s assets were transferred to East West Bank of Pasadena, CA by the FDIC in order to protect depositors. This agreement included all U.S. branches of United Commercial Bank, the Hong Kong branch of United Commercial Bank, and the subsidiary of United Commercial Bank headquartered in Shanghai, China. United Commercial Bank locations reopened on Monday as branches of East West Bank. As of October 23, 2009, Prosperan Bank had total assets of $11.2 billion and total deposits of approximately $7.5 billion. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.4 billion. United Commercial was the 14th bank to fail in California this year, and the largest of the banks to fail on Friday.

The total amount that this past weeks failures is estimated to have cost the FDIC’s Deposit Insurance Fund (DIF) is $1.53 billion. For more information on the 2009 bank failures and an interactive map of the location of bank closures, visit our continually updated Failed Bank List page here.