Four More Closures Bring Failed Bank Tally to 68

A new week, a new round of bank closings. Federal and state regulators have shut down four more community banks â€" in California, Arizona, Florida, and Minnesota. That pushes the ""failed bank tally for 2010"":http://www.fdic.gov/bank/individual/failed/banklist.html to 68. Together, the four seizures are expected to cost the FDIC an estimated $213.8 million.
[IMAGE] The largest failure of the weekend was ""1st Pacific Bank of California"":http://www.1stpacbank.com, headquartered in San Diego. ""City National Bank"":http://cnb.com/fb/index.asp of Los Angeles agreed to acquire 1st Pacific's six branches and about $250 million of deposits, for which it paid the FDIC a premium of 1.62 percent.

City National also agreed to purchase approximately $320 million in assets from the failed bank, including about $270 million in loans that will be subject to a loss-sharing agreement with the FDIC. According to a statement from City National, the loss-share portfolio consists of $147 million in commercial real estate and commercial and industrial loans, $76 million in construction loans, and approximately $47 million in residential and consumer loans.

The failure of 1st Pacific will cost the FDIC an estimated $87.7 million. It is the fifth California-based bank to go under this year.

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""Towne Bank of Arizona"":https://www.townebankaz.com in Mesa operated just one local branch office, with $113.2 million in deposits, and $120.2 million in assets. The FDIC brokered a deal with Tucson's ""Commerce Bank of Arizona"":http://www.commercebankaz.com to take over Towne Bank's operations.

Commerce Bank paid the FDIC a premium of 0.3 percent for the deposits and bought all of the failed bank's assets. The FDIC and Commerce Bank entered into a loss-share transaction on $80.1 million of the acquired assets. The closure is expected to cost the federal insurance agency $41.8 million.

In Bonifay, Florida, the 104-year old ""Bank of Bonifay"":http://thebankofbonifay.com was seized by regulators. It operated five branch offices, and had deposits of $230.2 million and assets totaling $242.9 million. ""First Federal Bank of Florida"":http://www.ffsb.com, based out of Lake City, stepped in as part of the cleanup.

First Federal did not pay the FDIC a premium to assume the failed bank's deposits, and agreed to purchase only $78.1 million of the Bank of Bonifay's assets, consisting of cash and cash equivalents. The FDIC said it will retain the remaining assets for later disposition. The closing will cost the federal agency an estimated $78.7 million.

In Champlin, Minnesota, it was ""Access Bank"":http://www.accessbankmn.com that had its doors shut. Access ran its business out of two branch offices, with $32 million in deposits and $32 million in assets. ""PrinsBank"":http://www.prinsbank.com in Prinsburg, Minnesota, was secured as the acquiring institution.

PrinsBank will pay the FDIC a premium of 0.02 percent for the deposits, and agreed to purchase essentially all of the assets. No loss-sharing agreement was included in the transaction. Access Bank's failure is expected to cost the FDIC $5.5 million.