) -- Three banks failed in Florida on Friday, along with one each in California and Arizona, bringing this year's tally of failed U.S. banks to 78.
All five of the banks that failed on Friday had been previously assigned E-minus (Very Weak) financial strength ratings by
), and all five were included in
of undercapitalized banks and thrifts, based on first-quarter regulatory data provided by
Bank of Florida Corporation
State regulators took over all three banking subsidiaries of
Bank of Florida Corp.
( BOFL) and appointed the Federal Deposit Insurance Corp. receiver. The failed institutions were
Bank of Florida - Southeast
of Fort Lauderdale,
Bank of Florida - Southwest
of Naples and
Bank of Florida - Tampa Bay
The FDIC arranged for
of Jacksonville to assume the three closed banks' total combined deposits of $1.3 billion, along with $1.5 billion in total assets. The agency agreed to share in losses on $1.2 billion of the acquired assets. All 13 branches of the failed banks were scheduled to reopen as EverBank branches on Tuesday, after being closed over the holiday weekend.
The FDIC estimated that the combined cost to its deposit insurance fund from the failure of the three Bank of Florida Corp. subsidiaries would be $203 million.
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Bank of Florida Corp. had amended its first-quarter financial results on May 18, recognizing additional impaired loans and increasing its first-quarter net loss to $48.2 million from the $33.1 million that had been reported on May 5. A $72 million rights offering -- through which the holding company hoped to stave-off the failure of the three banks by raising additional capital from current shareholders -- was set to expire.
Granite Community Bank, NA
The Office of the Comptroller of the Currency shut down
Granite Community Bank, NA
of Granite Bay, Calif. The FDIC arranged for
Tri Counties Bank
of Chico, Calif. to assume the failed bank's $103 million in total assets and $94 million in deposits. Tri Counties Bank is the main subsidiary of
Granite Community's three branches were set to reopen Tuesday as branches of Tri Counties Bank. The FDIC agreed to share in losses on $89 million of the assets acquired by Tri Counties, and estimated the cost to the insurance fund would be $17.3 million.
Sun West Bank
The Nevada Financial Institutions Division shuttered
Sun West Bank
of Las Vegas. The FDIC was appointed receiver and sold the failed bank's $354 million in deposits for a 0.67% premium to
City National Bank
of Los Angeles, the main subsidiary of
City National Corp.
In addition to the deposits, City National agreed to acquire Sun West's total deposits of $361 million. The FDIC agreed to share in losses on $280 million of the acquired assets and estimated the cost to the deposit insurance fund would be $96.7 million.
Sun West's seven offices were scheduled to reopen Tuesday as City National branches.
Ongoing Bank Failure Coverage
Including the three bank closures in the state on Friday, Florida has experienced 13 failures this year -- the most for any state -- followed by Illinois with 11 and Georgia with 8 failures. Georgia still leads in bank failures for the entire crisis, with 38 institutions shut down since the beginning of 2008, followed by Illinois with 33, Florida with 29 and California with 28 failed banks.
All previous bank and thrift failures since the beginning of 2008 are detailed in
interactive bank failure map:
The bank failure map is color-coded, with the states that have the greatest number of failures highlighted in red, and the states with no failures highlighted in gray. By moving your mouse over a state you can see its combined 2008-2010 totals. Clicking on the state will open a detailed map pinpointing the locations of the failures and providing additional information for each bank failure.
Free Financial Strength Ratings
features independent and very conservative financial strength ratings provided each quarter by Weiss Ratings, for each of the nation's banks and savings and loans. The ratings are available at no charge.
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.