UPDATE 1-U.S. regulators shut 5 banks; 78 total in 2010

(Adds new banks being shut in paragraphs 4, 5)

WASHINGTON, May 28 (BestGrowthStock) – U.S. regulators seized five
more troubled banks on Friday, including three banks owned by
Bank of Florida Corp (BOFL.O: ), 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 (CYN.N: ) 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.

Investment Basics

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

UPDATE 1-U.S. regulators shut 5 banks; 78 total in 2010