WRAPUP 1-U.S. regulators seize eight banks

WASHINGTON, April 16 (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.
(Reporting by Karey Wutkowski and Richard Cowan; Editing by
Gary Hill)

WRAPUP 1-U.S. regulators seize eight banks