Regulators Shutter Five Banks

Banks fail in Florida, Georgia, Washington and Oregon.
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Updated to clarify that State Bank & Trust of Macon, Ga. has acquired nine banks since the onset of the financial crisis.

WASHINGTON (

TheStreet

) -- State and federal regulators shut down five banks Friday, bringing the total number of bank failures for 2010 to 108.

All five failed banks were included in

TheStreet's

Bank Watch List

of undercapitalized institutions, based on first-quarter regulatory data provided by

SNL Financial

.

Arkansas Bank Acquires Two More Florida Banks

The Office of Thrift Supervision closed

Bayside Savings Bank

of Port Saint Joe, Fla., which had $66 million in total assets. Florida regulators shut down

Coastal Community Bank

of Panama City Beach, Fla., which had $373 million in assets.

The Federal Deposit Insurance Corp. was appointed receiver and sold both failed institutions to

Centennial Bank

of Conway, Ark., which is the main subsidiary of

Home BancShares

(HOMB) - Get Report

.

The FDIC agreed to share in losses on $351 million of the assets acquired by Centennial Bank and estimated the cost to its deposit insurance fund would be $16.2 million for Bayside and $94.5 million for Coastal Community Bank.

The failed banks' 13 offices of were set to reopen during normal business hours as Centennial Bank branches.

Centennial Bank has now acquired four failed Florida institutions this year, including

Old Southern Bank

of Orlando, Fla. on March 12 and

Key West Bank

on March 26.

Home Bancshares CEO C. Randall Simms described the government-assisted deal for the two Florida banks as "a terrific opportunistic acquisition which allows us to further expand our current Florida footprint into attractive, long-term growth markets in the Florida Panhandle." He said the Panhandle was a natural market extension, with a growing economy and status as a "long time vacation destination for many Arkansans."

NorthWest Bank & Trust

The Georgia Department of Banking and Finance took over

NorthWest Bank & Trust

of Acworth, Ga. and appointed the FDIC receiver. The FDIC arranged for all of the failed bank's assets and deposits to be acquired by

State Bank & Trust Co.

of Macon, Ga.

State Bank & Trust acquired about $168 million in assets from the failed bank, and the FDIC agreed to share in losses on $108 million and estimated the cost to its deposit insurance fund would be $39.8 million.

NorthWest Bank & Trust's two offices were scheduled to reopen Saturday as branches of State Bank & Trust Company.

This was the ninth acquisition of a failed Georgia institution by State Bank & Trust during the current cycle of bank failures, following the purchase of The Buckhead Community Bank of Atlanta and First Security National Bank of Norcross, both of which

failed in December

and the six bank subsidiaries of

Security Bank Corp

of Macon, Ga., which were closed by regulators in July 2009.

The Cowlitz Bank

State regulators closed

The Cowlitz Bank

of Longview, Wash., which was the main subsidiary of

Cowlitz Bancorporation

(CWLZ)

.

Cowlitz Bank had been operating under a June 15 FDIC order to raise significant capital or arrange a sale to a stronger institution within 30 days. The institution had $529 million in total assets when it failed.

The FDIC sold Cowlitz Bank's $514 million in deposits for a 1% premium to

Heritage Bank

of Olympia, Wash. In addition to the deposits, Heritage Bank acquired $330 million in assets, with the FDIC agreeing to share in losses on $161 million. The agency retained the remainder of Cowlitz Bank's assets for later disposition and estimated the cost to the deposit insurance fund would be $68.9 million.

Cowlitz's nine offices were scheduled to reopen Saturday as Heritage Bank branches. Two of the Cowlitz branches had been operating under the name

Bay Bank, a division of The Cowlitz Bank

.

Heritage Bank is held by

Heritage Financial

(HFWA) - Get Report

.

LibertyBank

The Oregon Division of Finance and Corporate Securities closed

LibertyBank

of Eugene, Ore., which had $768 million in total assets. The FDIC sold the failed bank's $719 million in deposits for a 1% premium to

Home Federal Bank

of Nampa, Idaho, which is the main subsidiary of

Home Federal Bancorp

(HOME) - Get Report

Home Federal also took on $420 million of LibertyBank's assets, with the FDIC agreeing to share in losses on $300 million. The FDIC retained the rest of the failed bank's assets for later disposition. The FDIC estimated that LibertyBank's failure would cost the deposit insurance fund $115.3 million.

LibertyBank's 15 branches were set to reopen Monday as Home Federal Branches.

Home Federal previously acquired

Community First Bank

of Prineville, Ore., which failed in August 2009.

Ongoing Bank Failure Coverage

There have now been 20 bank failures in Florida during 2010, which is the most for any state. The largest Florida failure since the current wave of bank closures began in 2008 was

BankUnited

, which suffered from an overconcentration in option-payment adjustable-rate mortgages. The failed lender was acquired by the new BankUnited, formed by an investor group led by John Kanas, in May 2009. The second largest Florida failure was

Riverside National Bank of Florida

, shut down by the OCC in April and acquired by

Toronto-Dominion Bank

(TD) - Get Report

, which outbid

Seacoast Banking Corp.

(SBCF) - Get Report

.

With the failure of NorthWest Bank & Trust, there have been 11 bank failures in Georgia this year and 41 since the beginning of 2008, which is the most for any state.

Silverton Bank, NA

of Atlanta was the largest Georgia bank failure during this cycle, with $4.1 billion in assets when it was liquidated in May 2009.

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

TheStreet.com's

interactive bank failure map:

The bank failure map is color-coded, with the states having the largest 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. Clicking on a state opens a detailed map pinpointing the locations of failures and providing additional information for each one.

--

Written by Philip van Doorn in Jupiter, Fla.

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 TheStreet.com 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.