Last update: June 25, 2010 - 6:54 PM
WASHINGTON - Regulators on Friday shut down banks in Florida, Georgia and New Mexico, lifting to 86 the number of U.S. bank failures this year.
The Federal Deposit Insurance Corp. took over Peninsula Bank, based in Englewood, Fla., with $644.3 million in assets and $580.1 million in deposits. The agency also seized First National Bank in Savannah, Ga., with $252.5 million in assets and $231.9 million in deposits, and High Desert State Bank, based in Albuquerque, N.M., with $80.3 million in assets and $81 million in deposits.
Miami-based Premier American Bank agreed to assume the assets and deposits of Peninsula Bank. In addition, the FDIC and Premier American Bank agreed to share losses on $437.6 million of Peninsula Bank's assets.
The Savannah Bank is assuming all the deposits and some of the assets of First National Bank; the FDIC will retain most of the assets for eventual sale.
Florida and Georgia are among the states with the highest concentrations of bank collapses and where the meltdown in the real estate market brought an avalanche of soured mortgage loans. Peninsula Bank was the 14th institution in Florida to fail this year, matching last year's total for the state.
First National Bank was the ninth to succumb this year in Georgia — where 25 banks failed in 2009, more than in any other state.
Also high on the list of failure-heavy states are California and Illinois.
First American Bank, based in Artesia, N.M., agreed to assume the assets and deposits of High Desert State Bank, and to share losses with the FDIC on $67.6 million of the failed bank's assets.
The failure of Peninsula Bank is expected to cost the deposit insurance fund $194.8 million. The failure of First National Bank is expected to cost $68.9 million; that of High Desert State Bank, $67.6 million.
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