In a busy week for bank regulators, eight U.S. banks shut their doors Friday, including Chicago's troubled ShoreBank, bringing the total number of bank failures for the year to 118.
Four of the eight failed banks were in California.
The Illinois Department of Financial and Professional Regulation appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for ShoreBank, established in 1973 to serve the city's South Side. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Urban Partnership Bank, Chicago, Illinois, a newly-chartered institution, to assume all of the deposits of ShoreBank.
The 15 branches of ShoreBank will continue to operate as branches of Urban Partnership Bank, including those in Detroit, Michigan, and Cleveland, Ohio, according to FDIC. As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits. Other banks shuttered Friday were:• Sonoma Valley Bank, Sonoma, California; the bank has been taken over by Westamerica Bank, San Rafael, Calif. As of June 30, 2010, Sonoma Valley Bank had approximately $337.1 million in total assets and $255.5 million in total deposits.
• Los Padres Bank, Solvang, California. The bank has been acquired by Pacific Western Bank, San Diego, Calif. Los Padres Bank operated 14 branches. As of June 30, 2010, Los Padres Bank had approximately $870.4 million in total assets and $770.7 million in total deposits.
• Butte Community Bank, Chico, California, and Pacific State Bank, Stockton, California, closed by the California Department of Financial Institutions, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the two banks. To protect depositors, the FDIC entered into purchase and assumption agreements with Rabobank, National Association, El Centro, California, to assume all the deposits and essentially all the assets of the two failed banks, which were not affiliated with one another. Collectively, the failed banks operated 23 branches. As of June 30, 2010, Butte Community Bank had total assets of $498.8 million and total deposits of $471.3 million; and Pacific State Bank had total assets of $312.1 million and total deposits of $278.8 million.
• Imperial Savings and Loan Association, Martinsville, Virginia. The bank, with only one location, was taken over by River Community Bank, N.A. As of June 30, 2010, Imperial Savings and Loan Association had approximately $9.4 million in total assets and $10.1 million in total deposits.
• Community National Bank, Bartow, Bartow, Florida, and Independent National Bank, Ocala, Florida. The two banks have been taken over by CenterState Bank of Florida, N.A. Collectively, the failed banks operated five branches. As of June 30, 2010, Community National Bank At Bartow had total assets of $67.9 million and total deposits of $63.7 million; and Independent National Bank had total assets of $156.2 million and total deposits of $141.9 million.
The cost to FDIC's Deposit Insurance Fund for this week's closings totaled $472.5 million. The largest portion of that was the $367.7 million required to close Chicago's ShoreBank.
