Published: Saturday, July 24, 2010
Oregon bank among seven closed Friday
WASHINGTON -- U.S. bank failures this year have surpassed a bleak milestone of 100 as regulators shut down banks in Oregon, Florida, South Carolina, Kansas, Nevada, Minnesota and Georgia.
The seven bank seizures announced Friday bring to 103 the failures so far in 2010. The pace of bank closures this year is well ahead of that of 2009, which saw a total of 140 banks shuttered amid the recession and mounting loan defaults. That was the highest annual tally since 1992, at the height of the savings and loan crisis.
The pace has accelerated as banks' losses mount on loans made for commercial property and development. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.
The Federal Deposit Insurance Corp. said it took over Crescent Bank and Trust Co., based in Jasper, Ga., with about $1 billion in assets; Sterling Bank of Lantana, Fla., with $407.9 million in assets; Williamsburg First National Bank of Kingstree, S.C., $139.3 million in assets; Thunder Bank of Sylvan Grove, Kan., $32.6 million; SouthwestUSA Bank, with one branch in Las Vegas, $214 million; Community Security Bank of New Prague, Minn., $108 million; and Home Valley Bank of Cave Junction, Ore., $251.8 million.
Renasant Bank, based in Tupelo, Miss., agreed to assume the assets and deposits of Crescent Bank and Trust. Iberiabank of Lafayette, La., is acquiring the assets and deposits of Sterling Bank. First Citizens Bank and Trust Co. of Columbia, S.C., is assuming the assets and deposits of Williamsburg First National Bank, while Bennington State Bank in Salina, Kan., is taking the assets and deposits of Thunder Bank.
Roundbank of Waseca, Minn., is assuming those of Community Security Bank. Plaza Bank, based in Irvine, Calif., is acquiring the deposits of SouthwestUSA Bank and $137.3 million of the assets. The FDIC will retain the rest for eventual sale. South Valley Bank & Trust in Klamath Falls, Ore., is assuming the assets and deposits of Home Valley Bank.
The failure of Home Valley Bank is expected to cost the deposit insurance fund about $37.1 million.
By this time last year, regulators had closed 64 banks.
The seven bank seizures announced Friday bring to 103 the failures so far in 2010. The pace of bank closures this year is well ahead of that of 2009, which saw a total of 140 banks shuttered amid the recession and mounting loan defaults. That was the highest annual tally since 1992, at the height of the savings and loan crisis.
The pace has accelerated as banks' losses mount on loans made for commercial property and development. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.
The Federal Deposit Insurance Corp. said it took over Crescent Bank and Trust Co., based in Jasper, Ga., with about $1 billion in assets; Sterling Bank of Lantana, Fla., with $407.9 million in assets; Williamsburg First National Bank of Kingstree, S.C., $139.3 million in assets; Thunder Bank of Sylvan Grove, Kan., $32.6 million; SouthwestUSA Bank, with one branch in Las Vegas, $214 million; Community Security Bank of New Prague, Minn., $108 million; and Home Valley Bank of Cave Junction, Ore., $251.8 million.
Renasant Bank, based in Tupelo, Miss., agreed to assume the assets and deposits of Crescent Bank and Trust. Iberiabank of Lafayette, La., is acquiring the assets and deposits of Sterling Bank. First Citizens Bank and Trust Co. of Columbia, S.C., is assuming the assets and deposits of Williamsburg First National Bank, while Bennington State Bank in Salina, Kan., is taking the assets and deposits of Thunder Bank.
Roundbank of Waseca, Minn., is assuming those of Community Security Bank. Plaza Bank, based in Irvine, Calif., is acquiring the deposits of SouthwestUSA Bank and $137.3 million of the assets. The FDIC will retain the rest for eventual sale. South Valley Bank & Trust in Klamath Falls, Ore., is assuming the assets and deposits of Home Valley Bank.
The failure of Home Valley Bank is expected to cost the deposit insurance fund about $37.1 million.
By this time last year, regulators had closed 64 banks.
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