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May 8, 2010 Saturday 10:32 AM EST
SECTION: NEWS & ANALYSIS; Financial Services
LENGTH: 562 words
HEADLINE: Bank Failures This Year Now Total 68
BYLINE: Philip van Doorn, TheStreet.com Ratings Bank Analyst.Philip W. van Doorn joined TheStreet.com Ratings., Inc., in February 2007. He is the senior analyst responsible for assigning financial strength ratings to banks and savings and loan institutions. He also comments on industry and regulatory trends. Mr. van Doorn has fifteen years experience, having served as a loan operations officer at Riverside National Bank in Fort Pierce, Florida, 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.
WASHINGTON (TheStreet) — The tally of bank failures in the U.S. for 2010 rose to 68 Friday after state regulators shuttered four community banks in four states.The bank failures in Florida, Minnesota, Arizona and California cost the Federal Deposit Insurance Corp.’s insurance fund a combined $213.7 million, which was much less than the $7.3 billion hit the fund took the previous week after banks failed in Puerto Rico and three states. The Bank of BonifayThe Florida Office of Financial Regulation shut down The Bank of Bonifay almost exactly two years after TheStreet first discussed the institution’s nonperforming construction loans and efforts to raise capital in the wake of a downturn in local construction projects. The downturn was centered around a reduction in land development activities by The St. Joe Company(JOE:NYSE). Bank of Bonifay had $243 million in total assets. The FDIC was appointed receiver and arranged for First Federal Bank of Florida, of Lake City, Fla. to acquire the failed institution’s deposits and $78 million in assets, with the agency retaining the rest for later disposition.Bank of Bonifay’s five offices were set to reopen Monday as branches of First Federal. The bank failure cost the deposit insurance fund an estimated $78.7 million. Access BankThe Minnesota Department of Commerce closed Access Bank of Champlin, Minn., which had $32 million in total assets. The FDIC sold the failed bank for a small premium to Prinsbank of Prinsburg, Minn. Access Bank’s two offices were to reopen during normal business hours as Prinsbank branches. The FDIC estimated the failure would cost the deposit insurance fund $5.5 million. Towne Bank of ArizonaState regulators shut down Towne Bank of Arizona, which had $120 million in total assets and was the main subsidiary of Towne Bancorp(TWNE:TWNE).The FDIC sold the failed bank for a small premium to Commerce Bank of Arizona of Tuscon, Ariz., with the agency agreeing to share in losses on $80 million of the acquired assets. Towne Bank’s office was scheduled to reopen Monday as a Commerce Bank branch. The FDIC estimated the bank failure would cost $41.8 million. 1st Pacific Bank of CaliforniaState regulators took over 1st Pacific Bank of California, which had total assets of $336 million. The FDIC sold the failed bank’s deposits for a 1.62% premium to City National Bank of Los Angeles, which is held by City National(CYN:NYSE). City National also agreed to take on the failed bank’s assets, with the FDIC agreeing to share in losses on $276 million.The agency estimated that 1st Pacific’s failure would cost the insurance fund $87.7 million. The failed bank’s six branches were scheduled to reopen Monday as City National branches. Ongoing Bank Failure Coverage