YTD Bank Closures 108 as of 7.30.2010

YTD Bank Closures 108 as of 7.30.2010

Seems like the pace of banks closing has dramatically increased this summer month.  Not sure why, but it is definitely a sign of the times.  The economy is not getting better as the mainstream media reports it. It is getting worse and banks taken over the FDIC is a real indicator that people are not able to pay their bills.

Today, 5 more banks were placed under the FDIC bringing the YTD Bank Closures to 108 as of 7.30.2010.  If I remember correctly, we had 140 banks taken over by the FDIC in 2009 so we are on pace to have more close this year.  Remember each bank that shutters its doors represent a chain of branches.  For example, the biggest closure was LibertyBank, of Eugene, Oregon, with total assets at $768.2 million and operating 15 branches.

E-Credit Daily:

Five more community banks from Florida, Georgia, Oregon and Washington have failed, siphoning nearly $335 million from the insurance fund of the Federal Deposit Insurance Corp. and pushing this year’s tally of closures to 108.

Florida’s total of bank failures reached 20 – by far the state with the highest closure rate.

The FDIC’s largest collapse in the past week was LibertyBank, of Eugene, Oregon, with total assets at $768.2 million and operating 15 branches.

The FDIC found buyers for all five institutions, but the faster pace of failures in 2010 – compared to last year that saw 140 closures – continues to gnaw at the agency’s Deposit Insurance Fund.

However, most of the closures have been smaller community banks hit hard by failing commercial real estate loan portfolios. The FDIC expects bank failures to peak this year, and not come close to the savings-and-loan crisis of the late 1980s.

Nonetheless, the agency has set aside $40 billion to cover failures from March 2010 through March 2011. The FDIC said it projects losses to its insurance fund to reach about $100 billion from 2009 through 2013.

From January 2010 through 2014, the projected losses will total about $60 billion, the FDIC has said.

Here is the FDIC’s list of the 5 most recent bank closures:

• LibertyBank, Eugene, OR with $768.2 million in total assets and $718.5 million in total deposits was closed. Home Federal Bank, Nampa, ID has agreed to assume all deposits.
• The Cowlitz Bank, Longview, WA, with $529.3 million in total assets and $513.9 million in total deposits was closed. Heritage Bank, Olympia, WA has agreed to assume all deposits, excluding certain brokered deposits.
• Coastal Community Bank, Panama City Beach, FL with $372.9 million in total assets and $363.2 million in total deposits was closed. Centennial Bank, Conway, AR has agreed to assume all deposits.
• Bayside Savings Bank, Port Saint Joe, FL with $66.1 million in total assets and $52.4 million in total deposits was closed. Centennial Bank, Conway, AR has agreed to assume all deposits.
• Northwest Bank & Trust, Acworth, GA, with $167.7 million in total assets and $159.4 million in total deposits was closed. State Bank and Trust Company, Macon Georgia, has agreed to assume all deposits, excluding certain brokered deposits.

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Nikki Reed
Elisha Cuthbert