FDIC Closes 4 Banks at a Cost of $160M – 90 Failures in 2010

Federal Deposit Insurance Corp.Regulators closed down four banks – 1 each in Oklahoma and New York and 2 in Maryland – at a combined cost of nearly $160 million to the Federal Deposit Insurance Corp.’s insurance fund.
The four brings this year’s total bank failures to 90 – a pace that is expected to surpass last year’s total of 140.
FDIC Chairman Sheila Bair said last month she expects bank closures to peak this year, and begin tapering off next year.
The agency has set aside $40 billion to cover failures from March 2010 through March 2011.
The FDIC staff last month advised the agency’s board to delay any changes to the premiums it charges banks beyond the three-basis-point increase scheduled for Jan. 1.
The FDIC said it still projects losses to its insurance fund to reach about $100 billion from 2009 through 2013. From January 2010 through 2014, the projected losses will total about $60 billion.
The largest failure this past week was Home National Bank, with about $644.5 million in total assets as of March 31. RCB Bank, also of Oklahoma, paid the FDIC a premium of 0.22 percent for the deposits of Home National Bank. RCB also agreed to purchase about $340.7 million of the failed bank’s assets.
The cost of Home National Bank to the FDIC’s Deposit Insurance Fund will be $78.7 million. Total cost for the four closures to the fund: $159.9 million.
Here’s a recap of the FDIC’s most recent closures:

  • Home National Bank, Blackwell, OK with $644.5 million in total assets and $560.7 million in total deposits. RCB Bank, Claremore, OK has agreed to assume all deposits
  • USA Bank, Port Chester, NY with $193.3 million in total assets and $189.9 million in total deposits. The FDIC entered into a purchase and assumption agreement with New Century Bank (doing business as Customer’s 1st Bank), Phoenixville, PA, to assume all of the deposits of USA Bank.
  • Ideal Federal Savings Bank, Baltimore, MD with $6.3 million in total assets and $5.8 million in total deposits. The FDIC has approved the payout of the insured deposits of Ideal Federal Savings Bank.
  • Bay National Bank, Baltimore, MD with $282.2 million in total assets and $276.1 million in total deposits. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bay Bank, FSB, Lutherville, MD, to assume all of the deposits of Bay National Bank.

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