Updated from 10/22/10
Updated to include information about a seventh bank failure on Friday.
WASHINGTON ( TheStreet) -- Regulators Friday shuttered seven banks spread across five states, bringing the total number of U.S. bank failures for 2010 to 139.
The bank closures cost the Federal Deposit Insurance Corp.'s insurance fund a combined $461.8.2 million. The agency found buyers for all of the failed institution save one, and there were some losses to depositors with uninsured balances.Six of the seven failed banks were previously included in TheStreet's Bank Watch List of undercapitalized institutions, based on second-quarter regulatory data provided by SNL Financial.
First Bank of JacksonvilleThe Florida Office of Financial Regulation closed First Bank of Jacksonville and appointed the FDIC receiver. The FDIC then sold the failed bank to Ameris Bank of Moultrie, Ga. First Bank of Jacksonville had been operating under an FDIC consent order since October 2009, when regulators ordered the institution's board of directors to "reaffirm its participation in the affairs of the Bank," by improving its oversight and taking steps to "retain qualified management." The bank was also required to charge off its most troubled loans within 30 days and increase its Tier 1 leverage ratio to 8% and its total risk-based capital ratio to 12% within 120 days. Those ratios need to be 5% and 10%, respectively, for most banks to be considered well-capitalized by regulators, and 4% and 8%, respectively, for most to be considered adequately capitalized. Over the past two years, hundreds of banks have been required by regulators to hold much higher levels of capital to absorb loan losses. As of June 30, First Bank of Jacksonville's Tier 1 leverage ratio was 0.83% and its total risk-based capital ratio was 2.41%. The bank's ratio of nonperforming assets -- including loans past due over 90 days or in nonaccrual status and repossessed real estate -- made up 13.99% of total assets. First Bank of Jacksonville had $81 million in total assets when it failed. The FDIC agreed to absorb 80% of losses on $60 million of the assets acquired by Ameris Bank and estimated that the cost of the bank closure to the deposit insurance fund would be $16.2 million. The failed bank's office was scheduled to reopen Monday as an Ameris branch. Ameris Bank is the main subsidiary of Ameris Bancorp (ABCB).
Progress Bank of FloridaState regulators also closed Progress Bank of Florida, which was based in Tampa, Fla. The FDIC was appointed receiver and sold the failed bank to Bay Cities Bank, also of Tampa. Progress Bank of Florida had $111 million in assets when it failed and had slipped to undercapitalized in the fourth quarter of 2009. That's when its nonperforming assets ratio doubled from the previous quarter to 14.66% and it posted a net loss of $6.7 million, mainly from loan loss provisions. After two more quarters of losses, the bank's Tier 1 leverage ratio was 1.41% and its total risk-based capital ratio was 3.32% as of June 30, and its nonperforming assets ratio was 16.69%. The FDIC agreed to share in 80% of losses on $83 million of the assets acquired by Bay Cities Bank and estimated the cost of the bank failure to the deposit insurance fund would be $25 million.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV