Regulators shut 5 banks as 2010 tally hits 78

WASHINGTON (BestGrowthStock) – U.S. regulators seized five more troubled banks on Friday, including three banks owned by Bank of Florida Corp, bringing the tally of banks closed so far this year to 78.

The Federal Deposit Insurance Corp said Bank of Florida – Southeast; Bank of Florida – Southwest; and Bank of Florida – Tampa Bay had a combined $1.48 billion in assets and 13 branches between them.

EverBank of Jacksonville, Florida, has agreed to acquire the banking operations, including a combined $1.32 billion in deposits, the FDIC said.

In addition, regulators shut Las Vegas-based Sun West Bank. The bank had $360.7 million in assets and $353.9 million in deposits. All its deposits will be taken over by City National Bank of Los Angeles.

The FDIC also announced regulators closed Granite Community Bank of Granite Bay, California, which had $102.9 million in assets and $94.2 million in deposits. Tri Counties Bank of Chico, California, assumed all the deposits.

The FDIC expects bank failures to peak this year following the worst financial crisis since the 1930s. Closures in 2010 are anticipated to exceed the 140 institutions that were shut last year.

Despite the rapid pace of failures, the banking industry (Read more about the banking industry recovery.) is showing signs of hope.

FDIC Chairman Sheila Bair said at the agency’s quarterly briefing on May 20 more banks in the past several weeks had been able to raise capital to boost their balance sheets or acquire other banks.

She also said the FDIC is seeing higher bids in failed bank auctions, meaning other firms are finding the assets of troubled banks more desirable.

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(Reporting by Christopher Doering; editing by Tim Dobbyn and Mohammad Zargham)

Regulators shut 5 banks as 2010 tally hits 78