Five Banks Fail, Three in Florida

WASHINGTON (TheStreet) -- Three banks failed in Florida on Friday, along with one each in California and Arizona, bringing this year's tally of failed U.S. banks to 78.

All five of the banks that failed on Friday had been previously assigned E-minus (Very Weak) financial strength ratings by Weiss Ratings (formerly TheStreet.com Ratings), and all five were included in TheStreet's Bank Watch List of undercapitalized banks and thrifts, based on first-quarter regulatory data provided by SNL Financial.

Bank of Florida Corporation

State regulators took over all three banking subsidiaries of Bank of Florida Corp. (BOFL) and appointed the Federal Deposit Insurance Corp. receiver. The failed institutions were Bank of Florida - Southeast of Fort Lauderdale, Bank of Florida - Southwest of Naples and Bank of Florida - Tampa Bay of Tampa.

The FDIC arranged for EverBank of Jacksonville to assume the three closed banks' total combined deposits of $1.3 billion, along with $1.5 billion in total assets. The agency agreed to share in losses on $1.2 billion of the acquired assets. All 13 branches of the failed banks were scheduled to reopen as EverBank branches on Tuesday, after being closed over the holiday weekend.

The FDIC estimated that the combined cost to its deposit insurance fund from the failure of the three Bank of Florida Corp. subsidiaries would be $203 million.

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Bank of Florida Corp. had amended its first-quarter financial results on May 18, recognizing additional impaired loans and increasing its first-quarter net loss to $48.2 million from the $33.1 million that had been reported on May 5. A $72 million rights offering -- through which the holding company hoped to stave-off the failure of the three banks by raising additional capital from current shareholders -- was set to expire.

Granite Community Bank, NA

The Office of the Comptroller of the Currency shut down Granite Community Bank, NA of Granite Bay, Calif. The FDIC arranged for Tri Counties Bank of Chico, Calif. to assume the failed bank's $103 million in total assets and $94 million in deposits. Tri Counties Bank is the main subsidiary of Trico Bancshares(TCBK).

Granite Community's three branches were set to reopen Tuesday as branches of Tri Counties Bank. The FDIC agreed to share in losses on $89 million of the assets acquired by Tri Counties, and estimated the cost to the insurance fund would be $17.3 million.