FDIC Bank Closures: 2010 Rate Twice Last Year’s

FDICFour more failing banks were closed by the Federal Deposit Insurance Corp. in the past week, bringing this year’s total to 68. Through April, the rate of failures was more than twice of last year’s – 64 banks compared to 28 in 2009.
All of last year saw 140 closures, the most since 1992.
The latest list of failed banks succumbing to bad commercial and development loans included one each from Arizona, California, Minnesota and Florida. The FDIC found buyers for all four, assuming its deposits totaling more than $665 million.
But the total cost the FDIC’s insurance fund will be nearly $214 million.
The breakdown of FDIC’s estimated cost: 1st Pacific Bank of California ($87.7 million); Towne Bank of Arizona ($41.8 million); Access Bank ($5.5 million); and Bank of Bonifay ($78.7 million).
The number of U.S.-insured banking institutions on the government’s “Problem List” jumped more than a quarter percent to 702 at the end of the fourth quarter, compared to the previous quarter, and total assets of these lenders grew 16 percent to $402.8 billion, according to the FDIC.
U.S. banks will pay more than $45 billion before year’s end to cover premiums through the next three years, under an agency plan approved in November to replenish the fund.
The FDIC has said it is well positioned to fund resolution activity through 2010 and beyond, assuming bank failures peak this year as is expected.
The FDIC insures up to $250,000 per account.
Here’s the FDIC recap of this past week’s closures:
1st Pacific Bank of California, San Diego, CA with $335.8 million in assets and $291.2 in deposits was closed. City National Bank, Los Angeles, CA has agreed to assume all deposits, excluding certain brokered deposits.
Towne Bank of Arizona, Mesa, AZ with $120.2 million in assets and $113.2 million in deposits was closed. Commerce Bank of Arizona, Mesa, AZ has agreed to assume all deposits, excluding certain brokered deposits.
Access Bank, Champlin, MN with $32.0 million in assets and $32.0 million in deposits was closed. PrinsBank, Prinsburg, MN has agreed to assume all deposits.
The Bank of Bonifay, Bonifay, FL with $242.9 million in assets and $230.2 million in deposits was closed. First Federal Bank of Florida, Lake City, FL has agreed to assume all deposits.

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