FDIC Closes Four More Banks, Annual Total At 90

The FDIC closed two more banks on Friday, bring the total for the year to 90. A total of 150 banks will be closed in 2010 based on the current pace. That would be well below what many analysts expected.

The FDIC raised $45 billion last year in anticipation of a wave of closings. It did so by getting member banks to immediately pay the fees that would be due between late 2009 and 2012. The cost of closing the four banks yesterday was only $160 million, very modest compared to others.

The banks closed were Home National Bank, Blackwell, OK, USA Bank, Port Chester, NY, Ideal Federal Savings Bank, Baltimore, MD and Bay National Bank, Lutherville, MD.For Home National Bank all deposit accounts have been transferred to RCB Bank, Claremore, OK. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $78.7 million.

For USA Bank the FDIC entered into a purchase and assumption agreement with New Century Bank (doing business as Customer’s 1st Bank), Phoenixville, Pennsylvania, to assume all the deposits of USA Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $61.7 million.

For Ideal Federal the FDIC was unable to find another financial institution to take over the banking operations of Ideal Federal Savings Bank. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. The cost to the FDIC’s Deposit Insurance Fund is estimated to be $2.1 million.

For Bay National Bank the FDIC entered into a purchase and assumption agreement with Bay Bank, FSB, Lutherville, Maryland, to assume all the deposits of Bay National Bank.The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.4 million

Douglas A McIntyre