Regulators seize eight banks

WASHINGTON (BestGrowthStock) – U.S. regulators on Friday seized eight banks with assets totaling more than $6 billion, raising the tally this year to 51 failed banks and adding to the carnage of small institutions that is expected to peak this year.

Canada’s TD Bank (TD.TO: )(TD.N: ), which is expanding in the United States, bought assets and liabilities of three troubled Florida banks worth $3.8 billion from the Federal Deposit Insurance Corp.

The eight banks were the most authorities closed since nine were seized last October.

The failed banks were spread across the United States, from Washington state and California to Massachusetts and Florida. Banks have been failing at a consistent pace as the industry still works through large portfolios of troubled mortgages and commercial real estate loans.

The Federal Deposit Insurance Corp said the eight banks that failed were:

* City Bank of Lynnwood, Washington, with assets of about $1.13 billion

* Tamalpais Bank of San Rafael, California, with assets of $628.9 million

* First Federal Bank of North Florida of Palatka, Florida, with assets of $393.9 million

* AmericanFirst Bank, of Clermont, Florida, with assets of $90.5 million

* Riverside National Bank of Florida, with assets of $3.42 billion

* Butler Bank of Lowell, Massachusetts, with assets of $268 million

* Lakeside Community Bank of Sterling Heights, Michigan, with assets of $53 million

* Innovative Bank of Oakland, California, with assets of $284 million.

The recovery of the bank industry is lagging behind the recovery of the overall economy, which is regaining footing after the worst financial crisis since the 1930s.

FDIC Chairman Sheila Bair recently said bank failures will likely peak in the third quarter of this year.

The agency estimates that the total bill for bank failures will come to $100 billion from 2009 through 2013.

Woes in the banking industry (Read more about the banking industry recovery.) have migrated from home mortgages to commercial real estate, especially for community banks that tend to have higher concentrations of commercial real estate loans.

In a sign of how many institutions are still struggling, the FDIC list of troubled banks jumped 27 percent in the fourth quarter to 702, or about 9 percent of all U.S. banks.

The list includes banks with issues related to liquidity, capital levels or asset quality.

Stock Market News

(Reporting by Karey Wutkowski and Richard Cowan; Editing by Gary Hill)

Regulators seize eight banks