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Two community-based lenders in California and two in Georgia were shut down over the weekend by banking regulators. These latest closings bring the number of names on the ""FDIC's failed bank list"":http://www.fdic.gov/bank/individual/failed/banklist.html to 22 for the 2011 calendar year to date.
[IMAGE] The FDIC has said it expects the number of bank closures in 2011 to be less than the 157 that failed in 2010. But if the pace of 20-plus every two months continues, institutional failures will remain extremely elevated by historical standards.To put things into perspective, in 2008, just as heavy losses on commercial and residential real estate loans began to riddle banks' balance sheets, there were 25 bank failures nationwide; in 2007 there were only three.
The research firm ""Foresight Analytics"":http://www.foresightanalytics.com/ said in analysis released late last month, ""With distressed real estate still burning a hole in many balance sheets, we expect there to be 100 or more failures in 2011 and beyond.""
This weekend, ""San Luis Trust Bank, FSB"":http://www.sanluistrustbank.com/cm/Home.html, of San Luis Obispo, California, was shut down by the Office of Thrift Supervision. It had a single branch office with $272.2 million in deposits and assets totaling $332.6 million.
""First California Bank"":http://www.fcbank.com out of Westlake Village, California, agreed to assume all of the deposits of San Luis Trust Bank and purchase all of its assets. The FDIC and First California Bank entered into a loss-share transaction on $241.7 million of the failed bank's assets. The seizure of San Luis Trust Bank will cost the FDIC an estimated $96.1 million.
[COLUMN_BREAK]""Charter Oak Bank"":http://www.charteroakbank.com/ in Napa, California, was also shuttered. It had two branch locations, $105.3 million in deposits, and $120.8 million in loan assets. Its closing is expected to cost the FDIC $21.8 million.
""Bank of Marin"":http://www.bankofmarin.com, headquartered in Novato, California, has acquired all the deposits and certain assets and assumed certain liabilities of Charter Oak Bank through a modified whole-bank purchase and assumption agreement with the FDIC. No loss-share arrangement was included as part of the deal.
The FDIC says it is retaining $28.5 million of Charter Oak's assets for later disposition. According to a statement from Bank of Marin, there were 56 loans excluded from its purchase package, most of which are at least 60 days delinquent or are land and construction loans the institution opted against buying.
In Clarkesville, Georgia, it was ""Habersham Bank"":http://www.habcorp.com/ that found regulators at its doors Friday evening. The institution operated eight branch offices with $339.9 million in deposits and $387.6 million in total assets. Founded in 1904, Habersham Bank was one of the oldest financial institutions in Northeast Georgia.
The FDIC brokered a deal with ""SCBT N.A."":http://www.SCBTonline.com of Orangeburg, South Carolina, to assume all of Habersham's deposits and purchase all of its assets. The FDIC and SCBT agreed to share losses on $270.7 million of the acquired loans. The Georgia bank's closing is expected to cost the federal agency $90.3 million.
""Citizens Bank of Effingham"":http://www.citizensbankofeffingham.com/ in Springfield, Georgia, was also shut down. It had four branches, $206.5 million in deposits, and loan assets worth approximately $214.3 million. ""HeritageBank of the South"":http://www.eheritagebank.com, headquartered in Albany, Georgia, agreed to pay the FDIC a premium of 1.0 percent for the deposits of Citizens Bank of Effingham, as well as purchase all of the failed bank's assets.
The FDIC and HeritageBank have entered into a loss-share agreement under which the FDIC will reimburse the bank for 80 percent of the losses on Citizens' covered loans and other real estate-owned assets, which together total $158.1 million. The seizure of Citizens Bank of Effingham is expected to cost the FDIC $59.4 million.
