The number of U.S. banks to go under this year surpassed the 100-mark over the weekend, as regulators closed the doors on community-based lenders in Florida, Georgia, Kansas, Minnesota, Nevada, Oregon, and South Carolina.[IMAGE]
The seven closures announced late Friday pushed the ""2010 failed-bank tally"":http://www.fdic.gov/bank/individual/failed/banklist.html to 103. The pace of bank collapses this year has intensified as smaller lenders continue to book mounting losses from commercial real estate loans.
The FDIC says it expects bank closings to peak in the latter half of 2010, but already the industry is on track to far exceed the 140 bank failures that typified 2009, which was the highest yearly total since the height of the savings and loan crisis in 1992.
In Lantana, Florida, it was ""Sterling Bank"":http://www.sterlingbankfl.com/ that found regulators at its doors Friday evening. Sterling had approximately $407.9 million in assets, $372.4 million in deposits, and operated six branches Ã¢â‚¬" all of which were acquired by Lafayette, Louisiana's ""Iberiabank"":http://www.iberiabank.com in an FDIC-assisted transaction.
Iberiabank did not pay the FDIC a premium for the deposits, and the federal agency agreed to share in the losses on $244.3 million of the loans picked up from Sterling. The Florida bank's failure is expected to cost the FDIC $45.5 million. It is the eighteenth bank in the state to fold this year.
""Crescent Bank and Trust Company"":https://www.crescentbank.com in Jasper, Georgia was closed by its state regulator. It had assets totaling $1.01 billion, deposits of $965.7 million, and 11 branch locations. ""Renasant Bank"":http://www.renasantbank.com of Tupelo, Mississippi agreed to step in and take over the failed institution.
Renasant will pay a 1.0 percent premium for the deposits. The FDIC and Renasant entered into a loss-share transaction on $617.4 million of the acquired assets. Crescent Bank's closing will cost the FDIC an estimated $242.4 million. It's the tenth Georgia bank to fail this year.
""Thunder Bank"":http://www.thunderbank.com/Default.aspx in Sylvan Grove, Kansas was also shuttered. It had approximately $32.6 million in assets, $28.5 million in total deposits, and two branch locations. ""The Bennington State Bank"":http://www.bsbks.com in Salina, Kansas was the acquiring institution.[COLUMN_BREAK]
Bennington did not pay the FDIC a premium for the deposits it picked up, and did not enter into a loss-share transaction on any of the acquired assets. Thunder Bank's failure is expected to cost the FDIC $4.5 million. It's the first Kansas bank to be closed this year.
The sole branch of ""Community Security Bank"":https://www.communitybanknp.com in New Prague, Minnesota was shut down by its state banking regulator. Community Security Bank had approximately $108.0 million in total assets and $99.7 million in deposits.
""Roundbank"":http://www.roundbank.com in Waseca, Minnesota paid the FDIC a premium of 0.89 percent to assume all of the deposits of Community Security Bank and agreed to purchase all of the failed bank's assets, with no loss-share agreement. The closing is the seventh in Minnesota this year, and is expected to cost the FDIC $18.6 million.
""SouthwestUSA Bank"":http://www.swusabank.com/ASP/home.asp, with just a single branch location in Las Vegas, was also shut down this weekend. It had $214 million in assets and $186.7 million in deposits. The FDIC brokered a deal with ""Plaza Bank"":http://www.plazabank.net of Irvine, California to take over the failed bank's operations.
Plaza Bank did not pay a premium for the deposits and agreed to purchase only $137.3 million of SouthwestUSA's assets, of which the FDIC agreed to share in the losses on $111.3 million. The FDIC says it will retain the remaining assets for later disposition. The Nevada bank's failure, the fourth in the state this year, will cost the federal agency an estimated $74.1 million.
In Cave Junction, Oregon, it was ""Home Valley Bank"":http://www.homevalleybank.com/ASP/home.asp that was shut down. With five branch offices, Home Valley had assets of $251.8 million and $229.6 million in deposits. ""South Valley Bank & Trust"":http://www.southvalleybank.com in Klamath Falls, Oregon was the acquiring institution.
South Valley Bank agreed to pay a 1.05 percent premium for the deposits it absorbed. The bank and the FDIC entered into a loss-share transaction on $211.6 million of the assets acquired. Home Valley's closing is expected to cost the FDIC $37.1 million. It's just the second bank in Oregon to fold this year.
""Williamsburg First National Bank"":http://www.williamsburgfnb.com in Kingstree, South Carolina has also been shuttered. It had five branch locations, $139.3 million in assets, and $134.3 million in deposits. The FDIC reached a deal with ""First Citizens Bank and Trust Company, Inc."":http://www.firstcitizensonline.com in Columbia, South Carolina to take over the failed institution.
First Citizens will pay the FDIC a premium of 0.5 percent for the deposits, and will share the losses on $64.4 million of the assets acquired with the federal agency. The closing of Williamsburg First National Bank will cost the FDIC an estimated $8.8 million. It's the fourth South Carolina-based institution to fail in 2010.