Number of Failed Banks Reaches 149

November 23, 2010

The Federal Deposit Insurance Corp. reported that state and federal regulators closed banks in Wisconsin, Florida and Pennsylvania.

Three more banks were closed by state and federal regulators, bringing the number of insured institutions on the Federal Deposit Insurance Corporation’s failed bank list to 149 for the year.

In 2009, there were 140 banks closed.

In Burlington, Wis., First Banking Center, which had 17 branch locations, $664.8 million in deposits and $750.7 million in total assets, was closed by he Wisconsin Department of Financial Institutions,

First Michigan Bank of Troy, Mich., reached an agreement with the FDIC to acquire the failed Wisconsin bank. First Michigan paid a 0.50 percent premium for the deposits it picked up and agreed to purchase all of First Banking Center’s assets. The FDIC agreed to share losses on $515.6 million of the acquired assets. The federal agency reported the closing will cost its insurance fund an estimated $142.6 million.

In Carrabelle, Fla., Gulf State Community Bank was closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. Arkansas-based Centennial Bank assumed all of the deposits of Gulf State Community Bank, which had five branches.

As of Sept. 30, Gulf State Community Bank had approximately $112.1 million in total assets and $112.2 million in total deposits. Centennial Bank did not pay the FDIC a premium to assume all of the deposits of Gulf State Community Bank. In addition to assuming all of the deposits of the failed bank, Centennial Bank agreed to purchase essentially all of the assets.

The FDIC says Gulf State’s failure will cost its insurance fund approximately $42.7 million. It’s the 28th bank in Florida to go under this year – the most of all states.

VST Bank in Wyomissing, Pennsylvania, agreed to acquire Cynwyd, Pa.-based Allegiance Bank, which operated five branch offices and had deposits of $92 million and assets totaling $106.6 million. It’s the first bank in the state of Pennsylvania to be shut down this year.

VIST Bank paid the FDIC a premium of 0.50 percent for the deposits and will also purchase all of Allegiance Bank’s assets. The closing is expected to cost the FDIC $14.2 million.

Contact ALTA at 202-296-3671 or

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