Last Friday proved to be another busy day for FDIC regulators as they made the closing rounds for six more banks. The trend of increasing bank failures week after week continued as banks in Georgia, Florida, Minnesota, California, and Washington succumbed to the onslaught brought about by the current economic crisis.
Closed
California Bank Biggest Failure
As with most closures, the FDIC was able to find buyers for all 6 banks, with the acquiring banks agreeing to assume all deposits including those that went beyond the FDIC limits.
First Regional Bank of Los Angeles, CA with 8 branches, $2.18 billion in assets, and $1.87 billion in deposits was the biggest bank to fail in last Friday’s haul, followed by the Community Bank and Trust of Cornelia, GA, and Immokalee, FL-based Florida Community Bank. The three other banks to be taken over by the FDIC regulators are First National Bank of Georgia of Carrollton, GA, Marshall Bank, N.A., of Hallock, MN, and American Marine Bank based in Bainbridge Island, WA.
The total cost to the Deposit Insurance Fund for all six failures is estimated to reach $1.86 billion.
The Fallen Six
Here are more details on the latest batch of failures:
First Regional Bank, Los Angeles, CA
- Size: 8 branches, $2.18 billion in assets, $1.87 billion in deposits
- Acquiring Bank: First-Citizens Bank & Trust Company, NC
- Estimated Cost to Deposit Insurance Fund: $825.5 million
Community Bank and Trust, Cornelia, GA
- Size: 36 branches, $1.21 billion in assets, $1.11 billion in deposits
- Acquiring Bank: SCBT, N.A., Orangeburg, SC
- Estimated Cost to Deposit Insurance Fund: $354.5 million
Florida Community Bank, Immokalee, FL
- Size: 11 branches, $875.5 million in assets, $795.5 million in deposits
- Acquiring Bank: Premier American Bank, N.A., Miami, FL
- Estimated Cost to Deposit Insurance Fund: $352.6 million
First National Bank of Georgia, Carrollton, GA
- Size: 11 branches, $832.6 million in assets, $757.9 million in deposits
- Acquiring Bank: Community & Southern Bank, Carrollton, GA
- Estimated Cost to Deposit Insurance Fund: $260.4 million
American Marine Bank, Bainbridge Island, WA
- Size: 11 branches, $373.2 million in assets, $308.5 million in deposits
- Acquiring Bank: Columbia State Bank, Tacoma, WA
- Estimated Cost to Deposit Insurance Fund: $58.9 million
Marshall Bank, N.A., Hallock, MN
- Size: 3 branches, $59.9 in assets, $54.7 million in deposits
- Acquiring Bank: United Valley Bank, Cavalier, ND
- Estimated Cost to Deposit Insurance Fund: $4.1 million
2010 Could Be Peak Year for Failures
Last year’s 140 bank failures was the highest number seen since 1992, costing the Deposit Insurance Fund some $30 billion, and putting it in the red. The FDIC sees this year as no different and even anticipates a rise in the number of closures.
The previous week, 5 banks closed and another 3 were shut down the week before. All in all, the total number of failures for this year has grown to 15. If the FDIC seizes at least the same number of bank in the next 11 months, we would see a record number of 180 closures for 2010, 40 more than last year’s.
For more information on bank failures in 2010, visit our Failed Banks List page here.
