Three more banks failed Friday, bringing the total for the year to 72. Two of the casualties were in Florida, and the third was in Central Oregon. The banks were small players in their respective states, and their closings cost the FDIC's deposit fund only a combined $185 million. The FDIC selected out-of-state buyers to purchase the deposits of the failed institutions.
In Florida, the FDIC put down First State Bank of Sarasota and Community National Bank of Venice. The non-brokered deposits of both banks were assumed by Stearns Bank of St. Cloud, Minn. On Monday, the combined 13 branches of the failed banks will reopen as Stearns. Both Florida banks were under enforcement orders requiring them to raise more capital and deal with problem loans.
The FDIC looked to Idaho to purchase the deposits of the failed Community First Bank of Prineville, Ore. Home Federal Bank of Nampa, Idaho, assumed all of the non-brokered deposits. It's the third Oregon bank to fail this year. As with many recent bank failures, Community First collapsed under the weight of bad construction and development loans. It was also under an enforcement order from regulators.
The FDIC's recent closures of small banks have left industry watchers wondering when the agency will be getting around to shuttering a few clearly tottering giants. Three names that have received extensive media coverage for being on the verge of failure are Chicago's Corus Bankshares, Alabama-based Colonial Bank and Austin, Texas-based Guaranty. The blog Calculated Risk has put together an unofficial problem bank list based in part on current enforcement orders. And don't forget to check out our sortable list of banks that have failed this year.