Bank Failure Tally Tops 120 in 2009

The Federal Deposit Insurance Corporation [FDIC] announced five new bank failures on Friday, bringing the nation’s tally to 120 for the year. Assets of more than $11.5 billion and deposits of nearly $8 billion from the five banks were turned over to new lenders at a total cost of $1.5 plus billion to the FDIC’s Deposit Insurance Fund, according to agency statements.

– Bank Failure #116

Georgia-based United Security Bank of Sparta was closed Friday by the Georgia Department of Banking and Finance. The FDIC entered into a purchase and assumption agreement with Ameris Bank, Moultrie, Georgia, to assume all of the deposits of United Security Bank.

As of September 14, 2009, United Security Bank had total assets of $157 million and total deposits of approximately $150 million. The failure is expected to cost the FDIC deposit insurance fund an estimated $58 million.

United Security Bank is the 116th bank to fail in the nation this year, and the twenty-first in Georgia. The last FDIC-insured institution closed in the state was American United Bank, Lawrenceville, on October 23, 2009.

– Bank Failure #117

Michigan-based Home Federal Savings Bank of Detroit was closed Friday by the Office of Thrift Supervision. The FDIC entered into a purchase and assumption agreement with Liberty Bank and Trust Company, New Orleans, Louisiana, to assume all of the deposits of Home Federal Savings Bank.

As of September 24, 2009, Home Federal Savings Bank had total assets of $14.9 million and total deposits of approximately $12.8 million. The failure is expected to cost the FDIC deposit insurance fund an estimated $5.4 million.

Home Federal Savings Bank is the 117th bank to fail in the nation this year, and the third in Michigan. The last FDIC-insured institution closed in the state was Warren Bank, Warren, on October 2, 2009.

– Bank Failure #118

Minnesota-based Prosperan Bank of Oakdale was closed Friday by the Minnesota Department of Commerce. The FDIC entered into a purchase and assumption agreement with Alerus Financial, National Association, Grand Forks, North Dakota, to assume all of the deposits of Prosperan Bank.

As of August 31, 2009, Prosperan Bank had total assets of $199.5 million and total deposits of approximately $175.6 million. The failure is expected to cost the FDIC deposit insurance fund an estimated $60.1 million.

Prosperan Bank is the 118th bank to fail in the nation this year, and the sixth in Minnesota. The last FDIC-insured institution closed in the state was Riverview Community Bank, Ostego, on October 23, 2009.

– Bank Failure #119

Missouri-based Gateway Bank of St. Louis was closed Friday by the Missouri Division of Finance. The FDIC entered into a purchase and assumption agreement with Central Bank of Kansas City, to assume all of the deposits of Gateway Bank of St. Louis.

As of September 25, 2009, Gateway Bank of St. Louis had total assets of $27.7 million and total deposits of approximately $27.9 million. The failure is expected to cost the FDIC deposit insurance fund an estimated $9.2 million.

Gateway Bank of St. Louis is the 119th bank to fail in the nation this year, and the third in Missouri. The last FDIC-insured institution closed in the state was First Bank of Kansas City, Kansas City, on September 4, 2009.

– Bank Failure #120

California-based United Commercial Bank of San Francisco, was closed Friday by the California Department of Financial Institutions. The FDIC entered into a purchase and assumption agreement with East West Bank, Pasadena, California, to assume all of the deposits of United Commercial Bank. This agreement included all U.S. branches of United Commercial Bank, the Hong Kong branch of United Commercial Bank, and the subsidiary of United Commercial Bank headquartered in Shanghai, China, United Commercial Bank (UCB-China).

As of October 23, 2009, United Commercial Bank had total assets of $11.2 billion and total deposits of approximately $7.5 billion. The FDIC and East West Bank entered into a loss-share transaction on approximately $7.7 billion of United Commercial Bank’s assets. The failure is expected to cost the FDIC deposit insurance fund an estimated $1.4 billion.

United Commercial Bank is the 120th bank to fail in the nation this year, and the 14th in California. The last FDIC-insured institution closed in the state was Pacific National Bank, San Francisco, which closed on October 30, 2009.

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