Bank Failures This Year Now Total 68

Bank failures for 2010 now total 68 after regulators closed four community banks in four different states.
Publish date:



) -- The tally of bank failures in the U.S. for 2010 rose to 68 Friday after state regulators shuttered four community banks in four states.

The bank failures in Florida, Minnesota, Arizona and California cost the Federal Deposit Insurance Corp.'s insurance fund a combined $213.7 million, which was much less than the $7.3 billion hit the fund took the previous week after

banks failed in Puerto Rico and three states


The Bank of Bonifay

The Florida Office of Financial Regulation shut down

The Bank of Bonifay

almost exactly two years after


first discussed the institution's nonperforming

construction loans

and efforts to raise capital in the wake of a downturn in local construction projects. The downturn was centered around a reduction in land development activities by

The St. Joe Company

(JOE) - Get Report


Bank of Bonifay had $243 million in total assets. The FDIC was appointed receiver and arranged for

First Federal Bank of Florida

, of Lake City, Fla. to acquire the failed institution's deposits and $78 million in assets, with the agency retaining the rest for later disposition.

Bank of Bonifay's five offices were set to reopen Monday as branches of First Federal. The bank failure cost the deposit insurance fund an estimated $78.7 million.

Access Bank

The Minnesota Department of Commerce closed

Access Bank

of Champlin, Minn., which had $32 million in total assets. The FDIC sold the failed bank for a small premium to


of Prinsburg, Minn. Access Bank's two offices were to reopen during normal business hours as Prinsbank branches. The FDIC estimated the failure would cost the deposit insurance fund $5.5 million.

Towne Bank of Arizona

State regulators shut down

Towne Bank of Arizona

, which had $120 million in total assets and was the main subsidiary of

Towne Bancorp



The FDIC sold the failed bank for a small premium to

Commerce Bank of Arizona

of Tuscon, Ariz., with the agency agreeing to share in losses on $80 million of the acquired assets. Towne Bank's office was scheduled to reopen Monday as a Commerce Bank branch. The FDIC estimated the bank failure would cost $41.8 million.

1st Pacific Bank of California

State regulators took over

1st Pacific Bank of California

, which had total assets of $336 million. The FDIC sold the failed bank's deposits for a 1.62% premium to

City National Bank

of Los Angeles, which is held by

City National


. City National also agreed to take on the failed bank's assets, with the FDIC agreeing to share in losses on $276 million.

The agency estimated that 1st Pacific's failure would cost the insurance fund $87.7 million. The failed bank's six branches were scheduled to reopen Monday as City National branches.

Ongoing Bank Failure Coverage

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in red, and states with no failures in gray. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click on the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

Free Financial Strength Ratings

Please see


Banks & Thrifts Screener

for independent and very conservative financial strength ratings on each of the nation's banks and savings and loans.


Written by Philip van Doorn in Jupiter Fla.

Philip W. van Doorn joined Ratings., Inc., in February 2007. He is the senior analyst responsible for assigning financial strength ratings to banks and savings and loan institutions. He also comments on industry and regulatory trends. Mr. van Doorn has fifteen years experience, having served as a loan operations officer at Riverside National Bank in Fort Pierce, Florida, and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a Bachelor of Science in business administration from Long Island University.