By Mark Huffman
ConsumerAffairs.Com
July 24, 2010
Seven more banks failed last week, pushing the total for the year to 103. At this time last year, only 57 banks had failed.
At the current rate, banking regulators say 2010's toll will far exceed the 140 banks that shut down in 2009.
The seven institutions taken over by the Federal Deposit Insurance Corporation last week are:
• Sterling Bank, Lantana, Florida: IBERIABANK, Lafayette, Louisiana, has assumed all of the deposits of Sterling Bank. As of March 31, 2010, Sterling Bank had approximately $407.9 million in total assets and $372.4 million in total deposits.
• Crescent Bank and Trust Company, Jasper, Georgia: Renasant Bank, Tupelo, Mississippi, has assumed all of the deposits of Crescent Bank and Trust Company. As of March 31, 2010, Crescent Bank and Trust Company had approximately $1.01 billion in total assets and $965.7 million in total deposits.
• Williamsburg First National Bank, Kingstree, South Carolina: First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, has assumed all of the deposits of Williamsburg First National Bank. As of March 31, 2010, Williamsburg First National Bank had approximately $139.3 million in total assets and $134.3 million in total deposits.
• Thunder Bank, Sylvan Grove, Kansas: The Bennington State Bank, Salina, Kansas, has assumed all of the deposits of Thunder Bank. As of March 31, 2010, Thunder Bank had approximately $32.6 million in total assets and $28.5 million in total deposits.
• Community Security Bank, New Prague, Minnesota: Roundbank, Waseca, Minnesota, has assumed all of the deposits of Community Security Bank. As of March 31, 2010, Community Security Bank had approximately $108.0 million in total assets and $99.7 million in total deposits.
• SouthwestUSA Bank, Las Vegas, Nevada: Plaza Bank, Irvine, California, has assumed all of the deposits of SouthwestUSA Bank. As of March 31, 2010, SouthwestUSA Bank had approximately $214.0 million in total assets and $186.7 million in total deposits.
• Home Valley Bank, Cave Junction, Oregon: South Valley Bank & Trust, Klamath Falls, Oregon, has assumed all of the deposits of Home Valley Bank. As of March 31, 2010, Home Valley Bank had approximately $251.80 million in total assets and $229.6 million in total deposits.
While most big banks have become profitable again, many regional and small banking institutions are still struggling from a lack of capital and too many bad loans, particularly for commercial real estate.
Even though 2010's toll of bank failures is expected to eclipse last year's total, banking regulators say they believe the banking crisis will peak this year, with the situation stabilizing next year.
