Saturday, November 6, 2010

U.S. Bank Failures In 2010 Reach 142

RTTNews.com
11/5/2010 8:40 PM ET
Regulators on Friday closed three more banks, one each in California, Maryland and Washington, taking the total number of U.S. bank failures to 142 so far this year and exceeding the total number of bank failures in the country in the whole of last year.

With 142 closures so far, the total number of bank failures this year has cross last year's figure of 140. Twenty-five banks failed in 2008 and only three failed in 2007.

Pierce Commercial Bank, Tacoma, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corp. as receiver.

The FDIC entered into a purchase and assumption agreement with Heritage Bank, Olympia, Washington, to assume all of the deposits of Pierce Commercial Bank.

As of September 30, Pierce Commercial Bank had about $221.1 million in total assets and $193.5 million in total deposits. Heritage Bank will pay the FDIC a premium of 1% to assume all of the deposits of Pierce Commercial Bank. In addition to assuming all of the deposits of the failed bank, Heritage Bank agreed to purchase essentially all of the assets.

Also, the California Department of Financial Institutions today closed Western Commercial Bank (WCBH.OB), Woodland Hills, California, and appointed the FDIC as receiver.

The FDIC entered into a purchase and assumption agreement with First California Bank, Westlake Village, California, a subsidiary of First California Financial Group, Inc. (FCAL),
to assume all of the deposits of Western Commercial Bank.

As of September 30, Western Commercial Bank had about $98.6 million in total assets and $101.1 million in total deposits. First California Bank will pay the FDIC a premium of 0.5% to assume all of the deposits of Western Commercial Bank. In addition to assuming all of the deposits of the failed bank, First California Bank agreed to purchase essentially all of the assets.

K Bank, Randallstown, Maryland, was closed today by the Maryland Office of Financial Regulation, which appointed the FDIC as receiver.

The FDIC entered into a purchase and assumption agreement with Manufacturers and Traders Trust Company, Buffalo, New York, to assume all of the deposits of K Bank, except certain brokered deposits. Brokered deposit customers should contact their brokers directly about the status of their accounts.

As of September 30, K Bank had about $538.3 million in total assets and $500.1 million in total deposits. M&T Bank did not pay the FDIC a premium for the deposits of K Bank. In addition to assuming all of the deposits of the failed bank, M&T Bank agreed to purchase approximately $410.8 million of the failed bank's assets. The FDIC will retain the balance of the assets for later disposition.

RTTNews.com