Regulators close 3 more banks in US; 2009 tally climbs to 72
08 Aug 2009
US regulators closed three more banks on Friday, bringing the number of such failures in the country so far this year to 72.
Friday's list included First State Bank and Community National Bank, both of Florida and Community First Bank of Oregon.
The closure of the three banks would cost the Federal Deposit Insurance Corp an estimated $185 million in insurance claims.
FDIC said Home Federal Bank would assume the insured deposits of First State, whose nine branches will reopen on Monday as branches of Federal Bank, Nampa, ID. First State, Florida had $463 million in assets and $387 million in deposits. Its failure would cost FDIC an estimated $116 million.
FDIC would take a hit of $14 million on Community National Bank, Florida, which had $97 million in assets and $93 million in deposits. The failed bank's four branches will also open as branches of Stearns Bank NA.
FDIC will take a $45 million charge on Community First Bank, Oregon, which had $209 million in assets and $182 million in deposits.
The failed bank has been merged with Home Federal Bank, Idaho and its eight branches will reopen on Monday as branches of Home Federal Bank, the assuming bank, FDIC said.
US regulators had closed 25 banks in 2008, including Seattle-based Washington Mutual, one of the biggest lenders in the US, and three in 2007. The total number of failed banks in the US since the beginning of the financial tsunami now stands at 100.