US Bank Closures Hit 103 Compared With 64 Last Year

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from 24/7WallStreet:



US Bank Closures Hit 103 Compared With 64 Last Year
Posted: July 24, 2010 at 7:23 am



The FDIC in conjunction with state bank authorities closed seven more banks on July 23, bringing the total for the year to 102.

The cost to the Deposit Insurance Fund was modest because the banks were all small, with the exception of Crescent Bank and Trust Company which cost the FDIC $242 million. Some analysts expect that 200 banks will close in 2010 and another 10o or more in 2011, putting a strain on FDIC resources. The agency had to assess the banks it insures their fees through 2012 to raise money when it ran out of funds in September 2009. The Treasury would have had to provide the funds otherwise.

Home Valley Bank, Grants Pass, OR, SouthwestUSA Bank, Las Vegas, NV, Community Security Bank, New Prague, MN, Thunder Bank, Sylvan Grove, KS, Williamsburg First National Bank, Kingstree, SC, Crescent Bank and Trust Company, Jasper, GA, and Sterling Bank, Lantana, FL were closed.

Home Valley Bank, Cave Junction, Oregon, was closed by the Oregon Department of Consumer and Business Services, which appointed the Federal Deposit Insurance Corporation as receiver. The FDIC entered into a purchase and assumption agreement with South Valley Bank & Trust, Klamath Falls, Oregon, to assume all of the deposits of Home Valley Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $37.1 million.

SouthwestUSA Bank, Las Vegas, Nevada, was closed by the Nevada Financial Institutions Division, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Plaza Bank, Irvine, California, to assume all of the deposits of SouthwestUSA Bank. The FDIC estimates that the cost to the DIFwill be $74.1 million

The complete piece is at: http://247wallst.com/2010/07/24/us-bank-closures-hit-103-compared-with-64-last-year/#more-74571#ixzz0ubMdA28G

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