New bank failures for the week of May 2, including two more Illinois banks and Florida's BankUnited, bringing the total number of institutions shuttered by regulators this year to 36. All 61 bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive bank failure map:
Illinois state regulators on Friday seized Strategic Capital Bank of Champaign, Ill. On Friday and the Federal Deposit Insurance Corp. arranged for all of the failed bank's deposits to be taken over by Midland States Bank of Effingham, Ill. The Office of the Comptroller of the Currency shuttered Citizens National Bank of Macomb, Ill. and the FDIC arranged for Morton Community Bank of Morton, Ill. to assume its retail deposits. BankUnited ( BKUNA) was closed on Thursday by the Office of Thrift Supervision, which called it "critically undercapitalized and in an unsafe condition to conduct business." It was acquired by a private equity consortium including includes WL Ross & Co., Carlyle Investment Management, a unit of Blackstone Group ( BX), Centerbridge Capital Partners, LeFrak Organization, The Wellcome Trust, Greenaap Investments and East Rock Endowment Fund. The private equity group won't take on approximately $348 million in brokered deposits at BankUnited. Illinois led all U.S. states with 17 banks considered undercapitalized under regulatory guidelines as of March 31, according to preliminary first-quarter regulatory data provided by SNL Financial. The state also has more banks than any other state, with 658 as of Dec. 31. Illinois was one of the last states to remove legal barriers against out-of-state banks doing business within its borders, which is one of the reasons it is not as far along on the road to consolidation as many other states.
Georgia, leads all states with 11 bank or thrift failures during 2008 and 2009, followed by California with nine failures, Illinois with six, Florida with five and Nevada with four. Large bank holding companies that have acquired failed institutions during 2008 and 2009 include JPMorgan Chase ( JPM), which acquired Washington Mutual, the largest bank or thrift ever to fail in the U.S., SunTrust Banks ( STI), Regions Financial ( RF), Zions Bancorp ( ZION), Fifth Third Bancorp ( FITB), US Bancorp ( USB) and BB&T ( BBT). 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!.