MercoPress. South Atlantic News Agency

Number of failed banks in the US reached 69 so far this year

The five failed banks will cost FDIC 911 million US dollars.

United States banks in New Jersey, Ohio, Florida, Oklahoma and Illinois were shut, pushing the toll of failed US lenders to 69 this year. The Federal Deposit Insurance Corporation was named the receiver of the five banks, the regulator said in e-mailed statements.

The seized banks, with total assets of 2.69 billion USD and deposits of 2.56 billion USD, will cost the FDIC insurance fund about 911.7 million USD. In 2008, 25 US banks were seized by officials, up from only three in 2007.

Mutual Bank of Harvey, Illinois, was the biggest of failures, with 1.6 billion in assets and the same amount in deposits. Peoples Community Bank in West Chester, Ohio, was second, with 705.8 million in assets and 598.2 million in deposits. The others were New Jersey’s First BankAmericano, Integrity Bank in Florida and First State Bank of Altus, Oklahoma.

US regulators are closing banks lenders at the fastest pace in 17 years, depleting the FDIC deposit insurance fund by more than 14.4 billion USD since January. The FDIC is offering to share losses with buyers of assets from failed banks, reviving a practice followed during the collapse of the savings-and-loan industry in the late 1980s.

The FDIC insures deposits at 8,246 institutions with 13.5 trillion USD in assets and reimburses customers for deposits of up to 250,000 USD when a bank fails.

Mutual Bank was closed by the Illinois Department of Financial Professional Regulation and its 12 branches will open Monday as offices of United Central Bank in Garland, Texas. United Central is buying all of Mutual Bank’s assets and deposits, with the FDIC sharing losses on 1.3 billion USD of assets.

The 19 branches of Peoples Community Bank, shut by the Office of Thrift Supervision, will reopen August 3 as part of First Financial Bank in Hamilton, Ohio. First Financial is buying the deposits and the FDIC agreed to share losses on 657.6 million USD of assets.

First BankAmericano of Elizabeth, New Jersey, was seized by the state Department of Banking and Insurance. Crown Bank of Brick, New Jersey, is assuming the failed bank’s 157 million USD of deposits and almost all of its 166 million in assets. The six offices will open tomorrow as part of Crown Bank.

The Florida Office of Financial Regulation closed Integrity Bank of Jupiter, Florida, and sold the 102 million of deposits to Stonegate Bank in Fort Lauderdale. Stonegate agreed to buy 52 million in assets and will reopen Integrity Bank’s sole office on August 3.

First State Bank of Altus was shut by the Oklahoma State Banking Department, and Herring Bank in Amarillo, Texas, is assuming the 98.2 million of deposits. Herring is purchasing 64.4 million in assets and reopening the branches Monday.