Two More Banks Fail Bringing 09’s Total To 71

Florida banking regulators on Friday shut down two regional banks, bringing the national tally up to 71 for 2009.

Bank Failure #70

First State Bank, Sarasota, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation [FDIC] as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of First State Bank, excluding those from brokers.

The FDIC said First State Bank had $436 million in assets and $387 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $116 million.

First State Bank is the 70th FDIC-insured institution to fail in the nation this year, and the fifth in Florida. The last FDIC-insured institution to be closed in the state was Integrity Bank, Jupiter, on July 31, 2009.

Bank Failure #71

Community National Bank of Sarasota County, Venice, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation [FDIC] as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of Community National Bank of Sarasota County.

The FDIC said Community National Bank had $97 million in assets and $93 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $24 million.

Community National Bank of Sarasota County is the 71st FDIC-insured institution to fail in the nation this year, and the sixth in Florida. The last FDIC-insured institution to be closed in the state was First State Bank, Sarasota, earlier today.

Economists expect the number of failed banks to continue rising this year as the nation’s economic outlook remains uncertain.

Update:  Bank Failure #72

The Federal Deposit Insurance announced Home Federal Bank, Nampa, Idaho, has assumed all of the deposits of Community First Bank, Prineville, Oregon.

According to the FDIC, Community First Bank had $209 million in assets and $182 million in deposits. In addition to assuming all of the deposits of the failed bank, Home Federal Bank agreed to purchase approx. $197 million of Community First Bank’s assets. The failure is expected to cost the FDIC deposit insurance fund an estimated $45.

Community First Bank is the 72nd FDIC-insured institution to fail in the nation this year, and the third in Oregon. The last FDIC-insured institution to be closed in the state was Silver Falls Bank, Silverton, Oregon, on February 20, 2009.

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