5 more banks fail
Regional banks in Oklahoma, Florida, Ohio, Illinois and New Jersey fall, bringing the national tally up to 69 for 2009. The closures cost the FDIC $912 million.
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NEW YORK (CNNMoney.com) -- Regulators shut down five regional banks Friday, the Federal Deposit Insurance Corporation said, bringing the total number of banks to fail in the United States to 69 this year.
Friday's bank closures will cost the FDIC fund $911.7 million, bringing the total cost for failed banks to $15.13 billion this year. That compares with $17.6 billion in all of 2008.
First State Bank of Altus, based in Altus, Okla., was shut down and Herring Bank, headquartered in Amarillo, Texas, will take over all of the deposits of the failed bank. As of June 19, the First State Bank of Altus had total assets of $103.4 million and deposits of $98.2 million. The failed bank was the first to go down in the state of Oklahoma in 2009.
Meanwhile, Integrity Bank, headquartered in Jupiter, Fla., was shuttered and Stonegate Bank, based out of Fort Lauderdale, Fla., will assume all of the deposits of Integrity Bank. As of June 5, Integrity Bank had total assets of $119 million and total deposits of $102 million. The failed Florida bank was the fourth to fail in the state so far this year.
The third bank to go down Friday was the Peoples Community Bank, based in West Chester, Ohio. The First Financial Bank, National Association, headquartered in Hamilton, Ohio, will take over all of the deposits of the failed bank. The failed bank was the first bank to be closed in Ohio in 2009, and as of March 31, had total assets of $705.8 million and total deposits of $598.2 million.
The fourth bank to fall Friday night was the First BankAmericano, based in Elizabeth, N.J., and the Crown Bank, of Brick, N.J. will take over the deposits. As of July 16, First BankAmericano had total assets of $166 million and total deposits of $157 million. The failed N.J. bank was the second bank in the state to fall in 2009.
The fifth and biggest bank of the night to fail was Mutual Bank in Harvey, Ill., which had total assets of $1.6 billion and total deposits of $1.6 billion. Mutual Bank's 12 branches will reopen on Saturday as branches of United Central Bank of Garland, Texas, which has assumed all deposits from Mutual Bank.
The number of bank failures so far in 2009 has almost tripled last year's total of 25.
Smaller regional banks have been hammered in the downturn. Many of the banks failed because local residents and commercial real estate developers that took out loans have been unable to pay them back.