One bank failed for the week of May 11, Washington state's Westsound Bank, bringing the total number of institutions shuttered by regulators this year to 33. All 58 bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive bank failure map:
Bremerton, Wash.-based Westsound, a subsidiary of WSB Financial Group ( WSFG), had $334.6 million in total assets and $304.5 million in deposits. The Federal Deposit Insurance Corp. immediately entered into a purchase-and-assumption agreement with Kitsap Bank of Port Orchard, Wash., under which Kitsap will take over all of Westsound's retail deposits and branches. Kitsap also purchased $49.3 million of assets. Kitsap chose not to take over about $9.4 million in brokered deposits. The FDIC will pay the brokers directly and instructed that group of depositors to contact their brokers. The FDIC retained the remaining assets for later disposition. The FDIC's estimated cost to its insurance fund is $108 million. The agency's estimated total cost to its deposit insurance fund for the bank failures during the first quarter of 2009 was $2.3 billion. Westsound was the third Washington bank or thrift to fail since the start of 2008. On Jan. 16, Bank of Clark County failed and its branches and deposits were acquired by Umpqua Holdings Corp. ( UMPQ). Seattle-based Washington Mutual was closed by regulators in September, with branches and deposits taken over by JPMorgan Chase ( JPM). TheStreet.com recently published a preliminary list of undercapitalized banks as of March 31. The list likely will be significantly expanded once a complete set of finalized data for all banks and thrifts is available.
Georgia leads all states with 11 bank or thrift failures during 2008 and 2009, followed by California with nine failures and then Florida, Illinois, and Nevada, each of which has had four bank or thrift failures. TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009, is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. It provides independent and very conservative financial strength ratings on each of the nation's 8,500 banks and savings and loans, which are available at no charge on the Banks & Thrifts Screener. To see how your portfolio can use this and other research, click here now!