The Federal Deposit Insurance Corporation [FDIC] announced three new bank failures on Friday, bringing the nation’s tally to 84 for the year amid continuing fallout from the worst economic crisis in more than 70 years. Assets of nearly $2 billion and deposits of $1.7 billion from the three banks were turned over to new lenders at a total cost of $446 million to the FDIC’s DIF, according to agency statements.
The FDIC was named receiver for Bradford Bank of Baltimore, Maryland, after being closed Friday by the Office of Thrift Supervision. To protect the depositors, the FDIC said it entered into a purchase and assumption agreement with Manufacturers and Traders Trust Company (M&T), Buffalo, New York, to assume all of the deposits of Bradford Bank.
As of June 30, 2009, Bradford Bank had $452 million in assets and $383 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $97 million.
Bradford Bank is the 82nd bank to fail in the nation this year, and the second in Maryland. The last FDIC-insured institution closed in the state was Suburban Federal Savings Bank, Crofton, on January 30, 2009.
Mainstreet Bank of Forest Lake, Minnesota, was closed Friday by the Minnesota Department of Commerce. To protect the depositors, the FDIC said it entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Mainstreet Bank.
As of June 30, 2009, Mainstreet Bank had $459 million in assets and $434 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $95 million.
Mainstreet Bank is the 83rd FDIC-insured institution to fail in the nation this year, and the second in Minnesota. The last bank to be closed in the state was Horizon Bank, Pine City, on June 26, 2009.
Affinity Bank of Ventura, California,was closed Friday by the California Dept of Financial Institutions. To protect the depositors, the FDIC said it entered into a purchase and assumption agreement with Pacific Western Bank, San Diego, California, to assume all of the deposits of Affinity Bank.
As of July 10, 2009, Affinity Bank had $1 billion in assets and $922 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $254 million.
Affinity Bank is the 84th FDIC-insured institution to fail in the nation this year, and the ninth in California. The last bank closed in the state was Vineyard Bank, National Association, Rancho Cucamonga, on July 17, 2009.
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