DSNews The homepage of the servicing industry
State and federal regulators closed the doors on two community banks over the weekend â€" ""Wakulla Bank"":http://www.wakullabank.com/ in Crawfordville, Florida, and ""Shoreline Bank"":http://www.eshorelinebank.com/ASP/home.asp in Shoreline, Washington.
[IMAGE]
The two lenders' closings bring the number of names on the ""FDIC's failed-bank list"":http://www.fdic.gov/bank/individual/failed/banklist.html to 129 so far for the 2010 calendar year. Interestingly enough, ""last week, regulators also shut down"":http://dsnews.comarticles/regulators-shut-down-lenders-in-florida-and-washington-2010-09-27 one community-based bank in Florida and one in Washington state.
Wakulla Bank had 12 branch offices, with $386.3 million in deposits and $424.1 million in assets. ""Centennial Bank"":http://www.my100bank.com of Conway, Arkansas, will assume all of the deposits of
[COLUMN_BREAK]Wakulla Bank for no premium cost and agreed to purchase essentially all of the failed bank's assets. The FDIC and Centennial Bank entered into a loss-share transaction on $212.7 million of the acquired assets.
Wakulla Bank's closing is expected to cost the FDIC $113.4 million. It is the 25th Florida bank to go under this year. The state holds claim to the most 2010 failures.
Washington's Shoreline Bank operated out of three local branches. It had deposits of $100.2 million and assets totaling $104.2 million. The FDIC brokered a deal with ""GBC International Bank"":http://www.gbcib.com, based in Los Angeles, to take over the failed institution's operations.
GBC will pay the FDIC a premium of 0.25 percent for Shoreline's deposits. GBC also agreed to purchase $65.7 million of the Washington bank's assets, of which the FDIC agreed to share losses on approximately $49.2 million. The FDIC says it will retain the balance of the assets for later disposition. Shoreline's failure will cost the FDIC an estimated $41.4 million.
The real estate and financial crises have been dire for the nation's banking system. Some analysts have estimated that the United States could lose as much as a third of its banks when all is said and done.
