New Bank Failures: Week of Oct. 26
NEW YORK (
) -- Seven community
on Friday brought the total number of banks and thrifts shut down by regulators this year to 106.
All 131 bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive bank failure map:
The bank failure map is now color-coded, with states having the greatest number of failures highlighted in red, and states with no failures in grey. By hovering your mouse over a state you can see the combined 2008-2009 totals for each state. Then click the state top open a detailed map with pinpointing the locations and providing additional information for each bank failure.
The fast pace of bank failures is almost sure to continue over the next couple of years, because loan quality is still declining as we move to the later stages of the credit crisis. There are hundreds of community banks and thrifts with capital ratios below the minimums required for most institutions to be considered
under regulatory guidelines. For these institutions, raising capital is very difficult because healthy banks and other investors considering bank acquisitions are being offered extremely generous loss-sharing guarantees from the Federal Deposit Insurance Corp. to buy failed banks and thrifts.
FDIC chairman Sheila Bair reassured depositors that their insured balances in U.S. banks and thrifts were safe in a YouTube video released on the occasion of the 100th bank failure this year.
The Office of Thrift Supervision closed
Partners Bank
of Naples, Fla., and appointed the FDIC receiver. The FDIC arranged for
Stonegate Bank
(SGBK)
of Fort Lauderdale, Fla. to assume all of the failed institution's $65 million in deposits, and its $65 million in total assets. The FDIC estimated the cost to its insurance fund would be $28.6 million.
Georgia Regulators shut down
American United Bank
of Lawrenceville, Ga. The FDIC sold all of the failed bank's deposits (totaling $101 million) and assets to
Ameris Bank
of Moultrie, Ga., a subsidiary of
Ameris Bancorp
(ABCB) - Get Report
. The FDIC agreed to share in losses on $92 million of the $111 million in total assets Ameris acquired from the failed institution and estimated the loss to the agency's insurance fund would be $44 million.
The Office of the Comptroller of the Currency closed
Flagship National Bank
of Bradenton, Fla. The FDIC arranged for
First Federal Bank of Florida
, of Lake City, Fla., to take over the failed bank's $175 million in deposits and its total assets of $190 million, with the agency agreeing to share in losses on $130 million of the assets. The FDIC estimated the cost to its insurance fund would be $59 million.
The third Florida bank to fail Friday was
Hillcrest Bank Florida
of Naples, which was shuttered by state regulators, with the FDIC selling the failed institution's $84 million in deposits to Stonegate Bank. Hillcrest Bank Florida had $83 million in total assets. In addition to the deposits, Stonegate acquired $28 million in assets, with the FDIC retaining the rest for later disposition and estimating $45 million in costs to its insurance fund.
Wisconsin regulators took over
Bank of Elmwood
of Racine, Wis. The FDIC then sold the failed bank's $273 million in deposits to
Try City National Bank
of Oak Creek, Wis. While the FDIC didn't mention a loss-share agreement on the $327 million in assets acquired by Try City, it estimated the cost to its insurance fund from Bank of Elmwood's failure would be $101.1 million.
State regulators closed
Riverview Community Bank
of Ostego, Minn. The FDIC sold the failed bank's $80 million in deposits and $108 million in total assets to
Central Bank
of Stillwater, Minn., with the FDIC agreeing to share in losses on $75 million in acquired assets and estimating the cost to the insurance fund to be $20 million.
Finally, state regulators closed
First DuPage Bank
of Westmont Ill. The FDIC sold the failed bank's $254 million in deposits and $279 million in total assets to
First Midwest Bank
of Itasca, Ill, a subsidiary of
First Midwest Bancorp
(FMBI) - Get Report
. The FDIC agreed to share in losses on $247 million in assets acquired by First Midwest and estimated the cost to its insurance fund would be $59 million.
leads all states with 25 bank or thrift failures during 2008 and 2009, followed by
with 18,
with 15, and
with 11 failures.
JPMorgan Chase
(JPM) - Get Report
, which acquired Washington Mutual, the largest-ever bank or thrift to fail in the U.S., is among the large bank holding companies that have acquired failed institutions during 2008 and 2009. Others include
SunTrust Banks
(STI) - Get Report
;
Regions Financial
(RF) - Get Report
;
Fifth Third Bancorp
(FITB) - Get Report
;
U.S. Bancorp
(USB) - Get Report
;
Zions Bancorp
(ZION) - Get Report
; and
PNC Financial
(PNC) - Get Report
; and
BB&T
(BBT) - Get Report
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--
Written by Philip van Doorn in Jupiter Fla.
Philip W. van Doorn joined TheStreet.com 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.
