U.S. bank regulators closed Waterford Village Bank of Clarence, New York, on Friday, bringing this year’s total number of failed banks to 58th in U.S., as the struggling economy and falling home prices continue to take their toll on financial institutions.
The Federal Deposit Insurance Corp [FDIC] said Waterford Village Bank had total assets of $61.4 million and total deposits of approximately $58 million. The failure is expected to cost the FDIC deposit insurance fund an estimated $5.6 million.
Evans Bank, N.A., Angola of New York, agreed to assume all of the deposits of Waterford Village Bank, whose single office will reopen on Monday as a branch of Evans Bank, the regulator said.
Waterford Village Bank is the first institution to fail in New York. The last FDIC-insured institution to be closed in the state was Reliance Bank, White Plains, March 19, 2004.
The number of bank failures so far in 2009 has more than doubled last year’s total of 25. The FDIC expects to incur roughly $70 billion in losses over the next five years due to the failure of insured institutions.