UPDATE 2-Regulators close four banks in US, 2010 total now 143

* Regulators close four more small banks

* 2010 failed bank total now surpasses last year

* But assets of failed banks in 2010 lower than in 2009
(Adds fourth failed bank)

WASHINGTON, Nov 5 (BestGrowthStock) – The number of bank failures
this year surpassed the 2009 tally on Friday when the Federal
Deposit Insurance Corp announced it closed four more banks.

Friday’s announcement brings the total failures to 143,
moving past the 2009 total of 140.

FDIC Chairman Sheila Bair said recently that while the
number of failures was expected to exceed the 2009 tally, the
total assets of this year’s failures will probably be lower.

In 2009 the total amount of assets held by failed banks was
$169.7 billion and so far in 2010 the total is $89.3 billion,
according to the FDIC.

On Friday, regulators said they closed:

* K Bank of Randallstown, Maryland, which had about $538.3
million in assets and $500.1 million in deposits. Buffalo, New
York-based M&T Bank (MTB.N: ) will assume the deposits of K Bank
and about $410.8 million of its assets.

* Pierce Commercial Bank of Tacoma, Washington, which had
about $221.1 million in assets and $193.5 million in deposits.
Heritage Bank (HFWA.O: ) of Olympia, Washington agreed to assume
the closed bank’s deposits and assets.

* Western Commercial Bank in Woodland Hills, California,
which had about $98.6 million in assets and $101.1 million in
deposits. First California Bank (FCAL.O: ), Westlake Village,
California, will assume the deposits and most of the assets.

* First Vietnamese American Bank (FVAB.OB: ), Westminster,
California, which had about $48 million in assets and $47
million in deposits. Grandpoint Bank of Los Angeles will assume
its deposits and assets.

The four failures were expected to cost the FDIC’s deposit
insurance fund an estimated total of $254.5 million.

Washington Mutual, which had $307 billion in assets when it
was seized in September 2008, remains the largest bank to fail
during the financial crisis.

In a good sign for the banking industry (Read more about the banking industry recovery.), the FDIC said on
Oct. 19 that due to lower than expected losses it is now
estimating that bank failures will cost the Deposit Insurance
Fund $52 billion from 2010 through 2014, compared with a prior
estimate of $60 billion.

The Deposit Insurance Fund, financed by banks that pay into
the fund, guarantees individual accounts up to $250,000.

Because of that lowered cost estimate and because the
Dodd-Frank reform legislation laid out new rules for the
insurance fund, the FDIC voted on Oct. 19 to forego a
3-basis-point increase in bank fees that had been scheduled to
go into effect on Jan. 1, 2011.
(Reporting by Dave Clarke and Roberta Rampton; Editing by Gary
Hill and Carol Bishopric)

UPDATE 2-Regulators close four banks in US, 2010 total now 143