Seven Banks Fail, 2010 Tally Tops 100

Regulators Friday shut down seven banks in seven states, bringing this year's tally of U.S. bank failures to more than 100.
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WASHINGTON (

TheStreet

) -- State and federal regulators closed seven banks Friday, which brought the tally of bank failures for 2010 to 103.

All seven failed institutions were included in

TheStreet's

Bank Watch List

of undercapitalized banks and thrifts, based on first-quarter regulatory data provided by

SNL Financial

.

As receiver, the Federal Deposit Insurance Corp. found buyers for the deposits of all the failed banks and for five of them, agreed to absorb 80% of losses on riskier assets pools acquired by other banks. The FDIC estimated the combined cost of the seven bank closures to its deposit insurance fund would be $432 million.

Sterling Bank

The Florida Office of Financial Regulation closed

Sterling Bank

of Lantana, Fla. and appointed FDIC receiver. The FDIC then arranged for

IBERIABANK

of Lafayette, La. to assume the failed institution's $372 million in total deposits and $408 million in total assets. The agency agreed to share in losses on $244 million of the acquired assets and estimated the cost to the deposit insurance fund would be $45.5 million.

Sterling Bank's six offices were scheduled to reopen Monday as branches of IBERIABANK, which is the main subsidiary of

IBERIABANK Corp.

(IBKC) - Get Report

.

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Crescent Bank and Trust

State regulators shut down

Crescent Bank and Trust Co.

of Jasper, Ga., which was the main subsidiary of

Crescent Banking Company

(CSNT)

. The FDIC was appointed receiver and sold the failed bank's $966 million in deposits for a 1% premium to

Renasant Bank

of Tupelo, Miss., which is held by

Renasant Corp.

(RNST) - Get Report

.

Renasant Bank also took on Crescent Bank and Trust's $1 billion in total assets, with the FDIC agreeing to share in losses on $617 million. Crescent's 11 branches were set to reopen as Renasant Branches during normal business hours. The FDIC estimated the cost to the deposit insurance fund would be $242.4 million.

Williamsburg First National Bank

The Office of the Comptroller of the Currency took over

Williamsburg First National Bank

of Kingstree, S.C. As receiver, the FDIC sold the failed bank's $134 million in deposits for a 0.5% premium to

First Citizens Bank and Trust Co.

of Columbia, S.C.

First Citizens Bank and Trust is held by

First Citizens Bancorporation

(FCBN)

. In addition to the deposits, First Citizens agreed to acquire the failed bank's $139 million in total assets, with the FDIC agreeing to share in losses on $64 million.

Williamsburg First National Bank's five branches were scheduled to reopen Monday as First Citizens branches. The FDIC estimated the failure would cost the deposit insurance fund $8.8 million.

Thunder Bank

The Kansas Office of the State Bank Commissioner shuttered

Thunder Bank

of Sylvan Grove, Kan. The FDIC then arranged for

The Bennington State Bank

of Salina, Kan. to assume the closed bank's deposits and its $33 million in total assets. Thunder Bank's two offices were set to reopen Monday as branches of The Bennington State Bank. The FDIC estimated the cost of Thunder Bank's failure to the deposit insurance fund would be $4.5 million.

Community Security Bank

State regulators in Minnesota closed

Community Security Bank

of New Prague, Minn., and the FDIC sold the failed bank's $100 million in deposits for a 0.89% premium to

Roundbank

of Waseca, Minn. Roundbank also agreed to acquire Community Security's $108 million in total assets. The failed bank's office was scheduled to reopen Saturday as a Roundbank branch. The FDIC estimated the cost to the deposit insurance fund would be $18.6 million.

SouthwestUSA Bank

The Nevada Financial Institutions Division shut down

SouthwestUSA Bank

of Las Vegas, and the FDIC arranged for the failed bank's $187 million in deposits to be assumed by

Plaza Bank

of Irvine, Calif.

SouthWestUSA Bank had $214 million in total assets when it failed. Plaza Bank agreed to take on $137 million of the failed bank's assets, with the FDIC agreeing to share in losses on $111 million. The agency held on to the remaining assets for later disposition and estimated the cost to its deposit insurance fund would be $74.1 million.

SouthWestUSA's office was set to reopen Monday as a branch of Plaza Bank.

Home Valley Bank

State regulators closed

Home Valley Bank

of Cave Junction, Ore. The FDIC sold the failed institution's $230 million in deposits for a 1.05% premium to

South Valley Bank & Trust

of Klamath Falls, Ore.

South Valley also agreed to acquire the failed bank's $252 million in assets, with the FDIC agreeing to share in losses on $212 million. Home Valley's five branches were scheduled to reopen Monday as branches of South Valley Bank Trust. The FDIC estimated the bank closure would cost the deposit insurance fund $37.1 million.

Ongoing Bank Failure Coverage

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 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 the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

--

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.