Six Banks Fail As Total Nears 100

Six more American banks failed. The FDIC and state bank authorities took over each one and sold the assets off to other firms. The tally of banks that failed this year is now 96.

The banks were Mainstreet Savings Bank, Hastings, MI, Olde Cypress Community Bank, Clewiston, FL, Turnberry Bank, Aventura, FL, Metro Bank of Dade County, Miami, FL, First National Bank of the South, Spartanburg, SC, and Woodlands Bank, Bluffton, SC.

The FDIC, out of money, raised $45 billion last September by levying its fees on banks making them pre-pay their obligations through 2012. The alternative would have been to take the money from the Treasury–the taxpayers. Many analysts estimate that bank closings in 2010 and 2011 could hit 300 which leaves open the question of whether the FDIC will have to go begging again.

Mainstreet Savings Bank, FSB, Hastings, Michigan, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Commercial Bank, Alma, Michigan, to assume all of the deposits of Mainstreet Savings Bank, FSB. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.4 million.

Olde Cypress Community Bank, Clewiston, Florida, was closed  by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits of Olde Cypress Community Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.5 million

Metro Bank of Dade County, Miami, Florida; Turnberry Bank, Aventura, Florida; and First National Bank of the South, Spartanburg, South Carolina, were closed by federal and state banking agencies, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for all three institutions. To protect depositors, the FDIC entered into purchase and assumption agreements with NAFH National Bank, Miami, Florida, a newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits and essentially all the assets of the three failed institutions. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Metro Bank of Dade County will be $67.6 million; for Turnberry Bank, $34.4 million; and for First National Bank of the South, $74.9 million.

Woodlands Bank, Bluffton, South Carolina, was closed  by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Woodlands Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $115.0 million

Douglas A. McIntyre