American Banker | Friday, May 7, 2010
By Joe Adler
Four small banks totaling $730 million in assets were closed late Friday on a relatively light evening for the Federal Deposit Insurance Corp.
State regulators shuttered $336 million-asset 1st Pacific Bank of California in San Diego, $243 million-asset The Bank of Bonifay in Bonifay, Fla., $120 million-asset Towne Bank of Arizona in Mesa, and $32 million-asset Access Bank in Champlin, Minn.
The closures, which brought the year’s failure toll to 68, were estimated to cost the FDIC about $208 million.
While the night's activity continued the steady stream of closures stemming from the crisis, the FDIC enjoyed some relief after having resolved at least seven failed banks on each of the previous three Fridays. Twenty-seven banks have now failed over the past month.
In the four takeovers Friday, all depositors were covered.
City National Bank in Los Angeles took over the operations of 1st Pacific, which closed with $291 million in deposits. The acquirer agreed to assume most of the failed bank’s deposits, paying a 1.6% premium, excluding certain brokered deposits that the FDIC typically covers directly. City National also will acquire essentially all of the failed bank's assets, and share losses with the FDIC on about $276 million of those assets. The FDIC estimated the failure to cost about $88 million.
The FDIC said First Federal Bank of Florida in Lake City had agreed to assume all of the Bank of Bonifay's $230 million in deposits, and acquire about $78 million of its assets. The failure was estimated to cost the agency $78.7 million.
Commerce Bank of Arizona agreed to assume most of Towne Bank's $113 million in deposits, except for certain brokered deposits. The acquirer paid a 0.3% premium. In addition, Commerce will acquire roughly all the assets, and share losses with the FDIC on $80 million of them. The failure was estimated to cost about $42 million.
PrinsBank in Prinsburg, Minn., will take over Access Bank's operations, assuming all $32 million of its deposits and acquiring virtually all of its assets. The failure was estimated to cost the agency about $5 million.