Banks Fail in Three States

WASHINGTON ( TheStreet) -- Regulators closed four banks on Friday, bringing this year's tally of U.S. bank failures to 143.

The bank closures cost the Federal Deposit Insurance Corp.'s insurance fund a combined $254.5 million.

All of the failed banks were previously included in TheStreet's Bank Watch List of undercapitalized institutions, based on preliminary third-quarter regulatory data provided by SNL Financial.

K Bank

State regulators in Maryland shut down K Bank of Randallstown, Md., which had $538 million in total assets and $500 million in deposits. The FDIC was appointed receiver and sold all of the retail deposits and roughly $411 million of the failed bank's assets to Manufacturers and Traders Trust Company of Buffalo, N.Y., which is the main subsidiary of M&T Bank Corp. ( MTB). The FDIC retained K Bank's remaining assets for later disposition and agreed to absorb 80% of the losses on $289 million of the assets acquired by M&T.

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The FDIC advised customers who made deposits in K Bank through brokers to contact the brokers directly about the status of their accounts.

K Bank's seven branches were scheduled to reopen Saturday as branches of M&T. The FDIC estimated the bank failure would cost its deposit insurance fund $198.4 million.

This was M&T Bank Corp's second acquisition of the week, following the announcement Monday of a deal to acquire Wilmington Trust ( WL) for about $351 million in stock. That announcement followed Wilmington's report of a third-quarter net loss to common shareholders of $369.9 million.

Western Commercial Bank

The California Department of Financial Institutions took over Western Commercial Bank of Woodland Hills, Calif. and appointed the FDIC receiver. The FDIC sold the failed bank's $101 million in deposits for a 0.5% premium to First California Bank of Westlake Village, Calif., which is the main subsidiary of First California Financial Group ( FCAL). First California also agreed to assume the failed bank's total assets of about $99 million. The FDIC agreed to share in losses on $83.9 million of the acquired assets and estimated the cost of Western Commercial Bank's failure to the deposit insurance fund would be $25.2 million.

Western Commercial's office was set to reopen Monday as a First California Branch.

Pierce Commercial Bank

The Washington Department of Financial Institutions shuttered Pierce Commercial Bank of Tacoma, Wash. The FDIC was appointed receiver and sold the failed bank's total deposits of $194 million for a 1% premium to Heritage Bank of Olympia, Wash. Heritage Bank is held by Heritage Financial Corp. ( HFWA).

Heritage Bank also agreed to take on the failed bank's $221 million in total assets. The FDIC estimate the cost of Pierce Commercial Bank's failure to the deposit insurance fund would be $21.3 million.

Pierce Commercial Bank's office was to reopen Monday as a branch of Heritage Bank.

First Vietnamese American Bank

California regulators also closed First Vietnamese American Bank of Westminster, Calif. The FDIC as receiver arranged for Grandpoint Bank of Los Angeles to assume the failed bank's $48 million in total assets and $47 million in deposits. The FDIC estimated the bank failure would cost the deposit insurance fund $96 million.

First Vietnamese American Bank's sole branch was scheduled to reopen Saturday as a branch of Grandpoint Bank.

Thorough Bank Failure Coverage

All bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. 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 and providing additional information for each bank failure.

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-- Written by Philip van Doorn in Jupiter, Fla.

>To contact the writer of this article, click here: Philip van Doorn.

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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.

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