Two banks in Maryland and one each in New York and Oklahoma were shut down over the weekend by their respective regulators, bringing the total number of ""failed FDIC-insured institutions"":http://www.fdic.gov/bank/individual/failed/banklist.html to 90 so far this year.[IMAGE]
The FDIC says it expects bank closings to peak in the latter half of 2010, but already the industry is well on pace to far exceed the 140 bank failures that characterized 2009.
In Baltimore this weekend, it was ""Bay National Bank"":http://www.baybankmd.com that found regulators knocking to shut down its operations, after the Office of the Comptroller of the Currency (OCC) found ""that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices.""
The OCC approved a shelf charter on Friday for the Washington, D.C.-based private equity firm ""Hovde Acquisition LLC"":https://www.hovdecapital.com/ov/ov_4_1.cfm to take over the failed institution's two local branches and $276.1 million in deposits. Hovde did not pay a premium for the deposits, and will continue the bank's operations under the name Bay Bank, FSB.
The new Bay Bank, FSB also acquired ""essentially all"" of its predecessor's $282.2 million in loans and assets, according to a statement from the FDIC. The closing is expected to cost the federal insurance agency $17.4 million.[COLUMN_BREAK]
Also in Baltimore, ""Ideal Federal Savings Bank"":http://www.idealfederal.com/idealfedsvngsmd_transfer.html had its doors shuttered, but the FDIC was unable to find a buyer for this one. The agency made arrangements to maintain Ideal's operations until July 24 to give customers a chance to transfer accounts, at which time any remaining depository funds held at the defunct bank will be mailed to owners.
Ideal Federal had total deposits of $5.8 million, as well as $6.3 million in assets. The FDIC plans to retain the assets for later disposition. Ideal's failure is expected to cost the federal agency $2.1 million.
""USA Bank"":http://www.usa-bankers.com in Port Chester, New York was also closed. It had just a single local branch, deposits worth $189.9 million, and $193.3 million in assets. The FDIC brokered a deal with New Century Bank of Phoenixville, Pennsylvania, d.b.a. Customer's 1st Bank, to pick up the pieces of the failed institution.
The FDIC and New Century Bank entered into a loss-share transaction on $159.1 million of the newly acquired assets. The closing will cost the FDIC an estimated $61.7 million.
And in Blackwell, Oklahoma, it was ""Home National Bank"":http://www.homenational.com that went under. ""RCB Bank"":http://www.rcbbank.com of Claremore, Oklahoma agreed to acquire the failed lender.
RCB will take over Home National's 15 branches and $560.7 million in deposits. RCB also agreed to purchase $340.7 million of the failed bank's $644.5 million in assets.
In a separate transaction with the FDIC, ""Enterprise Bank & Trust"":http://www.enterprisebank.com/Home.aspx of Clayton, Missouri agreed to purchase approximately $260.8 million of Home National's assets, most of which are in Arizona. The FDIC will retain the remaining assets for later disposition. Home National's failure is expected to cost the federal agency $78.7 million.