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Regulators Shut Down Five Banks Friday, Raising 2012 Tally to 22

After what seemed to be a slow month for bank closings, with just one closing April 20, the ""FDIC"":http://www.fdic.gov/ announced five bank closings Friday, raising the national tally of failed banks to 22 so far this year.

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Regulators shuttered two Maryland banks, Bank of the Eastern Shore and HarVest Bank. At the end of 2011, Bank of Eastern Shore had $166.7 million in assets and $154.5 million in deposits. At the time of closing, the amount of uninsured deposits was unknown, and those deposits are set to be determined when the FDIC obtains more information from customers.

FDIC created the Deposit Insurance National Bank of Eastern Shore (DINB), which will remain open until May 25, for depositors of the failed bank to access and transfer their accounts. For those who do not transfer their accounts by the 25th, FDIC will mail checks to the address of record for the amount of the insured funds.

The closing of Bank of the Eastern Shore is estimated to cost the FDIC's Deposit Insurance Fund $41.8 million. The bank is the 18th FDIC-insured institution to close this year and the first in Maryland.

HarVest Bank, the 19th bank this year and second bank to close in Maryland, held approximately $164.3 million in assets and $145.5 million in deposits at the end of 2011. ""Sonabank"":http://www.sonabank.com/ of McLean, Virginia agreed to purchase the failed banks assets and assume all deposits. The estimated cost to the FDIC insurance fund is $17.2 million.

InterBank, fsb of Maple Grove, Minnesota was the third bank to close over the weekend and the 20th in the nation this year. ""Great Southern Bank"":https://www.greatsouthernbank.com/ of Reeds Spring, Missouri, will purchase the failed bank's assets and assume deposits, which were $481.6 million and $473 million, respectively, as of the end of 2011.

The four branches of InterBank, fsb reopened Monday as branches of Great Southern Bank. The estimated cost to the FDIC's insurance fund is $117.5 million.

Plantation Federal Bank of Pawleys Island, South Carolina was the the fourth bank to close over the weekend and the 21st in the nation.

""First Federal Bank"":http://www.firstfederal.com/Default.asp?bhcp=1 (formerly known as First Federal Savings and Loan Association of Charleston) of Charleston, South Carolina will purchase the failed bank's assets and assume all deposits. As of the end of the 2011, the bank held approximately $486.4 million in assets and $440.5 million in deposits. The closing is estimated to cost the FDIC's insurance fund $76 million.

Palm Desert National Bank of Palm Desert, California was the fifth and last bank to close over the weekend, raising the national tally of failed banks to 22.

""Pacific Premier Bank"":https://www.ppbi.com/ agreed to purchase the bank's assets, which totaled approximately $125.8 million as of December 31, 2011. The failed bank also held about $122.8 million in deposits at that time, which Pacific Premier will assume.

The sole branch of the closed bank reopened Monday as Pacific Premier. The estimated cost to the FDIC's insurance fund is $20.1 million.

Last year, the FDIC reported 92 bank closings, a slowdown compared to 157 closings in 2010.

About Author: Esther Cho

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