After a promising and slow start to bank failures this year, banking regulators are back in full swing with another five announced last Friday. The two largest banks to fail were Charter Bank of New Mexico and Columbia River Bank of Washington, both with over $1 billion in assets each.
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Charter Bank, Santa Fe, NM
The Office of Thrift Supervision appointed the FDIC as receiver of Charter Bank on Friday, which entered into an agreement with Charter Bank of Albuquerque to assume all deposits of the failed bank. Charter Bank of Albuquerque is a subsidiary of Beal Financial Corporation.
The banks eight branches will be reopened under Charter Bank of Albuquerque, and depositors will be able to access their money from those branches as usual.
Columbia River Bank, The Dalles, Oregon
The second larger bank failure over the weekend was Columbia River Bank, with 21 branches and $1.1 billion in total assets. The FDIC entered into an assumption agreement with Columbia State Bank of Tacoma, WA which will assume all branch locations and deposits of the failed bank.
The three other failed banks announced this week were Bank of Leeton of Leeton, MO, Premier American Bank of Miama, FL, and Evergreen Bank of Seattle, WA.
Total Cost of Failures
The total amount that the failures from Friday, January 22nd is estimated to cost the Deposit Insurance Fund is $531.7 million. This weekend marks the most failures in one weekend for 2010, and brings the total for the year to 9. The last time this many banks failed at once was December 18th of last year, which saw 7 failures in a weekend.
For more information, visit our updated 2010 Failed Bank List page here.
