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Horizon Bank Fails; 2010 Total at 119

Regulators shut down Horizon Bank of Bradenton, Fla. on Friday, bringing 2010's bank failure total to 119.



) - Florida regulators on Friday shut down

Horizon Bank

of Bradenton, bringing the total number of bank failures for 2010 to 119.

The failed bank was included in


Bank Watch List

of undercapitalized institutions, based on second-quarter regulatory data provided by SNL Financial.

Horizon Bank was undercapitalized since the second quarter of 2009, when a $6.9 million net loss pushed the institution's Tier 1 leverage ratio down to 4.04% and its total risk-based capital ratio to 6.66%. These ratios need to be at least 5% and 10% for most banks and thrifts to be considered


by regulators. The capital ratios need to be at least 4% and 8% for most to be considered adequately capitalized.

By June 30, 2010, the capital ratios had declined to 1.43% and 3.14%, and Horizon Bank's ratio of nonperforming assets - loans past due 90 days or in nonaccrual status and repossessed real estate - comprised 12.18% of total assets. The institution was ordered on March 9 to raise sufficient capital to become adequately capitalized within seven days or arrange a sale to another institution, although the Fed had the authority to grant extensions and clearly did so.

It remains a difficult environment for troubled banks to raise capital, as potential acquirers are still better off waiting for an institution to fail, so they can make a government-assisted acquisition at a bargain price.

After Horizon bank failed, the

Federal Deposit Insurance Corporation

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was appointed receiver and sold the failed institution to

Bank of the Ozarks


of Little Rock, Ark. The FDIC agreed to share in losses on $150 million of the acquired assets.

Horizon Bank's four offices were set to reopen Monday as branches of Bank of the Ozarks.

This was the third purchase of a failed bank this year by Bank of the Ozarks, following

Unity National Bank

of Cartsville, Ga., which failed in March and

Woodlands Bank

of Bluffton, S.C., which was closed in July.

Thorough Bank Failure Coverage





leads all states with 23 bank closures, followed by 15 in


and 11 failures in



All bank and thrift failures since the beginning of 2008 are detailed in's

revamped interactive bank failure map:

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


More Banks Join Watch List >>

10 Bank Acquisition Targets >>


Written by Philip van Doorn in Jupiter, Fla.

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Philip van Doorn


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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., 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.