Wall Street Journal
State and federal banking regulators seized three small lenders on Friday, lifting the total number of bank failures this year to 133.
The Federal Deposit Insurance Corp. estimated that the three failures—in Florida, Arizona and Kansas—would cost the agency's cash-strapped deposit-insurance fund a total of about $252 million.
In Friday's first failure, the FDIC sold Miami-based Republic Federal Bank NA's branches, deposits and most of its assets to 1st United Bank of Boca Raton, Fla. The failure, the 13th this year in Florida, is expected to cost the FDIC's insurance fund $122.6 million.
Later Friday, federal regulators seized Valley Capital Bank NA of Mesa, Ariz., and sold the one-branch bank's deposits and assets to Enterprise Bank & Trust of Clayton, Mo. The FDIC estimated the failure, the fourth in Arizona this year, will cost its insurance fund $7.4 million.
Finally, Kansas regulators shuttered SolutionsBank of Overland Park, marking the third bank to fail in Kansas this year. The FDIC sold the bank's deposits, branches and assets to Arvest Bank of Fayetteville, Ark. The FDIC said the failure will cost its insurance fund about $122.1 million.
In all three failures, the FDIC agreed to shield the acquiring banks from most losses on the failed banks' assets.
The 133 failures so far this year represent the largest number of bank collapses since 1992, when 181 lenders toppled during the tail end of the savings-and-loan crisis. Federal officials, bankers and analysts expect the number of bank failures to remain high at least through next year.
Banks have been failing at an especially rapid clip this year in Florida and Georgia, leading the FDIC earlier this year to open a "temporary satellite office" in Jacksonville, Fla., to facilitate closings of nearby banks. The FDIC said the office would be staffed by approximately 500 workers.
The Federal Deposit Insurance Corp. estimated that the three failures—in Florida, Arizona and Kansas—would cost the agency's cash-strapped deposit-insurance fund a total of about $252 million.
In Friday's first failure, the FDIC sold Miami-based Republic Federal Bank NA's branches, deposits and most of its assets to 1st United Bank of Boca Raton, Fla. The failure, the 13th this year in Florida, is expected to cost the FDIC's insurance fund $122.6 million.
Later Friday, federal regulators seized Valley Capital Bank NA of Mesa, Ariz., and sold the one-branch bank's deposits and assets to Enterprise Bank & Trust of Clayton, Mo. The FDIC estimated the failure, the fourth in Arizona this year, will cost its insurance fund $7.4 million.
Finally, Kansas regulators shuttered SolutionsBank of Overland Park, marking the third bank to fail in Kansas this year. The FDIC sold the bank's deposits, branches and assets to Arvest Bank of Fayetteville, Ark. The FDIC said the failure will cost its insurance fund about $122.1 million.
In all three failures, the FDIC agreed to shield the acquiring banks from most losses on the failed banks' assets.
The 133 failures so far this year represent the largest number of bank collapses since 1992, when 181 lenders toppled during the tail end of the savings-and-loan crisis. Federal officials, bankers and analysts expect the number of bank failures to remain high at least through next year.
Banks have been failing at an especially rapid clip this year in Florida and Georgia, leading the FDIC earlier this year to open a "temporary satellite office" in Jacksonville, Fla., to facilitate closings of nearby banks. The FDIC said the office would be staffed by approximately 500 workers.
