FDIC clocks 15 bank failures so far in 2010

LOS ANGELES (BestGrowthStock) – Six more U.S. banks were seized on Friday as regulators continue to close the doors of banks struggling to cope with fallout from the financial crisis.

The Federal Deposit Insurance Corp (FDIC) said First Regional Bank in Los Angeles, Florida Community Bank, First National Bank of Georgia, American Marine Bank in Washington, Marshall Bank in Minnesota and Community Bank and Trust in Georgia had failed — pushing the tally to 15 banks that have failed this year.

The FDIC expects 2010 to be a peak for bank failures as a result of the financial crisis. Last year, 140 banks failed, compared to 25 in 2008 and three in 2007.

First-Citizens Bank & Trust Co, of Raleigh, North Carolina, will purchase $2.17 billion in total assets and $1.87 billion in total deposits from First Regional Bank, the FDIC said.

The eight branches of First Regional Bank, whose parent company was First Regional Bancorp, will reopen on Monday as branches of First-Citizens.

SCBT, N.A. of Orangeburg, S.C.will assume $1.1 billion in total deposits and about $1.21 billion in total assets from Community Bank and Trust, of Cornelia, Ga., FDIC said.

Community Bank’s 36 branches will reopen during normal business hours as branches of SCBT but will continue to conduct business under its own name, FDIC said.

Florida Community Bank, of Immokalee, Fla., will be taken over by Premier American Bank N.A., of Miami, but will continue doing business under its old name. The bank’s branches are due to open on Saturday.

As of September 30, 2009, Florida Community Bank had $875.5 million in total assets and $795.5 million in total deposits.

Premier, which was acquired on January 22 by Naples, Florida-based Bond Street LLC, will pay the FDIC a premium of 0.4 percent to assume all deposits of Florida Community Bank and will buy $499 million of the failed bank’s assets.

The 11 branches of First National Bank of Georgia, in Carrollton, will reopen on Saturday as Community & Southern Bank branches. As of September 30, 2009, First National had $832.6 million in total assets and $757.9 million in total deposits.

Community & Southern Bank, also in Carrollton, will pay FDIC a premium of 1.25 percent to assume all of the deposits of First National and will purchase essentially all of its assets.

American Marine Bank, of Bainbridge Island, Washington, had total assets of $373.2 million and total deposits of $308.5 million as of September 30, 2009, which will be assumed by Columbia State Bank in Tacoma, Washington.

United Valley Bank, of Cavalier, N.D., will take over $59.9 million in total assets and $54.7 million in total deposits from Marshall Bank, of Hallock, Minn.

U.S. regulators have said the banking industry (Read more about the banking industry recovery.)’s recovery will lag the overall economy.

The FDIC has said it expects the total bill for bank failures to reach $100 billion for the period of 2009 through 2013.

Stock Report

(Reporting by Gina Keating; Editing by Richard Chang, Bernard Orr and Carol Bishopric)

FDIC clocks 15 bank failures so far in 2010