With the Friday closure of three more banks - Regional banks in California, Maryland, and Minnesota - by the federal regulators, the toll number of banks shut down thus far this year has increased to a disquieting 84! The mounting number of closures is largely a consequence of the housing crisis and high jobless rates, which have taken their toll on local financial institutions.
The collective cost of Friday's closures to the Federal Deposit Insurance Corporation (FDIC) is estimated at $446 million.
Of the three recently-closed banks, the biggest was the Ventura, California-based Affinity Bank, with $1 billion in total assets, and $922 million in deposits. As of July 10, Affinity bank had 10 branches in Northern and Southern California, which, according to an FDIC announcement, will be taken over by Pacific Western Bank based in San Diego.
Meanwhile, the nine branches of the Bradford Bank based in Baltimore, Maryland, with $452 million in assets and $383 million in deposits, will reopen on Monday as part of Albany, New York-based Manufacturers and Traders Trust Company (M&T).
Lastly, the eight branches of the third failed bank, the Forest Lake, Minnesota-based Mainstreet Bank, will be taken over by Stillwater-based Central Bank, which will pay a premium of 0.1 percent to the FDIC for Mainstreet's $434 million deposits and $459 million assets.
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