Eight Banks Fail, 2010 Tally Hits 50

Butler Bank

State regulators in Massachusetts shut down Butler Bank of Lowell, Mass., which was the first institution to fail in the state since the nation's banking crisis began in 2008. Butler Bank had $268 million in total assets, and the FDIC arranged for the institution to be acquired by People's United Bank of Bridgeport, Conn., the main subsidiary of People's United Financial(PBCT).

When People's United announced its first-quarter earnings results on Thursday, CEO Philip Sherringham had said the company was pursuing acquisitions.

The FDIC agreed to share in losses on $206 million of the assets acquired by People's United and estimated to the cost to the insurance fund would be $22.9 million. Butler Bank's four offices were scheduled to reopen during normal business hours Saturday as People's United branches.

Innovative Bank

The California Department of Financial Institutions closed Innovative Bank of Oakland, Calif. and appointed the FDIC receiver. The FDIC sold the failed bank's $225 million in deposits for a 0.5% premium to Center Bank of Los Angeles, the main subsidiary of Center Financial(CLFC). Center Bank also acquired the failed institution's $269 million in total assets, with the FDIC agreeing to share in losses on $178 million. The four Innovative branches were set to reopen Saturday as branches of Center Bank. The FDIC estimated the cost to the deposit insurance fund would be $37.8 million.

Tamalpais Bank

California bank regulators also shut down Tamalpais Bank of San Rafael, which was a subsidiary of Tamalpais Bancorp(TAMB). The failed institution's $488 million in deposits were sold by the FDIC for a 2% premium to Union Bank, NA of San Francisco, which is held by Mitsubishi UFJ Financial(MTU). In addition to the deposits, Union Bank, NA agreed to take on the failed bank's total assets of $629 million, with the FDIC sharing in losses on $522 million. The FDIC estimated the cost to the deposit insurance fund would be $81.1 million.

City Bank

The Washington Department of Financial institutions took over City Bank(CTBK) of Lynnwood, Wash. The failed bank had $1.13 billion in total assets and was sold to Whidbey Island Bank of Coupeville, Wash., which paid a 1% premium for the failed bank's $1 billion in deposits.

Whidbey Island Bank is a subsidiary of Washington Banking Co.(WBCO).

City Bank's eight branches were scheduled to reopen as Whidbey Island branches during normal business hours beginning Saturday. The FDIC agreed to share in losses on $456 million of the assets acquired by Whidbey Island Bank, and estimated the cost to the deposit insurance fund would be $323.4 million.

Ongoing Bank Failure Coverage

All previous bank and thrift failures since the beginning of 2008 are detailed in TheStreet.com's interactive bank failure map:

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The bank failure map is color-coded, with states with the greatest number of failures highlighted in red, and states with no failures in gray. By hovering your mouse over a state you can see its total number of failures since 2008. Clicking on it will open a detailed map that pinpoints the locations of the state's failures and provides additional information about them.

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-- Written by Philip van Doorn in Jupiter Fla.

-- At the time of publication, van Doorn held shares of Riverside Banking Co., the privately held holding company of Riverside National Bank of Florida, where he was previously employed.

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