Five Regional Banks Fail, Making 9 in 2010

State regulators shut down five regional banks Friday, the Federal Deposit Insurance Corporation said, bringing the total number of banks to fail in the U.S. to 9 this year.

Bank failure #5 in 2010

» Miami-based Premier American Bank was the first bank closed Friday. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Premier American Bank, National Association of Miami, Florida, a newly-chartered national institution, to assume all of the deposits of Premier American Bank.

The FDIC said Premier American Bank had $350.9 million in assets and $326.3 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $85 million.

Premier American Bank is the fifth bank o fail in the nation this year, and the first in Florida. The last FDIC-insured institution closed in the state was Peoples First Community Bank, Panama City, on December 18, 2009.

Bank failure #6

» Bank of Leeton, Leeton, Missouri, was closed Friday by the Missouri Division of Finance. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Sunflower Bank, National Association of Salina, Kansas, to assume all of the deposits of Bank of Leeton.

The FDIC said Bank of Leeton had $20.1 million in assets and $20.4 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $8.1 million.

Bank of Leeton is the sixth bank to fail in the nation this year, and the first in Missouri. The last FDIC-insured institution closed in the state was Gateway Bank of St. Louis, on November 6, 2009.

Bank failure #7

» Charter Bank of Santa Fe, New Mexico was closed Friday by the Office of Thrift Supervision. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Charter Bank, Albuquerque, New Mexico to assume all of the deposits of Charter Bank.

The FDIC said Charter Bank, whose eight branches will reopen on Monday as branches of Charter Bank of Albuquerque, had $1.2 billion in assets and $851.5 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $201.9 million.

Charter Bank is the seventh bank to fail in the nation this year, and the first in New Mexico. The last FDIC-insured institution closed in the state was Zia New Mexico Bank, Tucumcari, on April 23, 1999.

Bank failure #8

» Evergreen Bank of Seattle, Washington, was closed Friday by the Washington Department of Financial Institutions. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank of Roseburg, Oregon, to assume all of the deposits of Evergreen Bank.

The FDIC said Evergreen Bank, whose seven branches will reopen on Monday as branches of Umpqua Bank, had $488.5 million in assets and $439.4 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $64.2 million.

Evergreen Bank is the eighth bank to fail in the nation this year, and the second in Washington. The last FDIC-insured institution closed in the state was Horizon Bank, Bellingham, on January 8, 2010.

Bank failure #9

» Columbia River Bank of The Dalles, Oregon, was closed Friday by the Oregon Division of Finance and Corporate Securities. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of Columbia River Bank.

The FDIC said 21 branches of Columbia River Bank will reopen during their normal business hours beginning Saturday as branches of Columbia State Bank.

As of September 30, 2009, Columbia River Bank had $1.1 billion in assets and 1.0 billion in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $172.5 million.

Columbia River Bank is the ninth bank to fail in the nation this year, and the first in Oregon. The last FDIC-insured institution closed in the state was Community First Bank, Prineville, on August 7, 2009.

The FDIC expects bank failures to accelerate in 2010. It is estimated that the cost of its insurance fund will be about $100 billion from 2009 through 2013.

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