Feds Shut Banks in Calif., Ga. and S.D.

(AP)  Regulators on Friday shut two banks in California and two smaller banks in Georgia and South Dakota, boosting to 57 the number of federally insured banks to fail this year.

The Federal Deposit Insurance Corp. was appointed receiver of the four banks. The two biggest were Temecula Valley Bank,/B>, in Temecula, Calif., with $1.5 billion in assets and deposits of about $1.3 billion as of May 31 and Vineyard Bank, National Association, of Rancho Cucamonga, Calif. It had assets of $1.9 billion and $1.6 billion in deposits as of March 31.

The two smaller banks were First Piedmont Bank, based in Winder, Ga., which had about $115 million in assets and $109 million in deposits as of July 6 and BankFirst, based in Sioux Falls, S.D., with around $275 million in assets and $254 million in deposits as of April 30.

The FDIC said all of Temucula's deposits will be assumed by First-Citizens Bank and Trust Company of Raleigh, N.C. The bank also will purchase essentially all of the assets. San Diego-based California Bank & Trust agreed to assume the deposits of Vineyard Bank, excluding about $134 million from brokers. California Bank & Trust will purchase about $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and First-Citizens struck a loss-share agreement on about $1.3 billion of Temecula's assets. The agency and California Bank & Trust agreed to a loss-share transaction for about $1.5 billion of Vineyard assets.

All of First Piedmont's deposits will be assumed by First American Bank and Trust Co. of Athens, Ga., which also agreed to buy about $111 million of its assets. Alerus Financial, based in Grand Forks, N.D., agreed to assume all the deposits of BankFirst as well as $72 million in assets.

In addition, the federal agency and First American Bank and Trust entered into a loss-sharing agreement covering about $90 million of First Piedmont Bank's assets. And Beal Bank Nevada, based in Las Vegas, agreed to acquire $177 million of BankFirst's loans.

Friday's move brings the number of bank closings in California this year to eight.

With First Piedmont, 15 Georgia banks have failed since the beginning of 2008, more than in any other state. Most of the failures have involved banks in the Atlanta area, where the collapse of the real estate market brought economic dislocation.

Until Friday, however, no federally insured bank had been closed in South Dakota since 1992, when First Federal Savings Bank of South Dakota, based in Rapid City, was shut down during the savings and loan crisis.

The 57 bank failures nationwide this year compare with 25 last year and three in 2007.

The FDIC estimates that the cost to the deposit insurance fund from the failure of Temecula will be $391 million and $579 million for Vineyard Bank. For First Piedmont Bank, the cost is put at $29 million. The cost to the fund from BankFirst's failure is estimated at $91 million.

As the economy has soured - with unemployment rising, home prices tumbling and loan defaults soaring - bank failures have cascaded and sapped billions out of the deposit insurance fund. It now stands at its lowest level since 1993, $13 billion as of the first quarter.

While losses on home mortgages may be leveling off, delinquencies on commercial real estate loans remain a hot spot of potential trouble, FDIC officials say. If the recession deepens, defaults on the high-risk loans could spike. Many regional banks hold large numbers of them.

The Treasury Department has launched a program in which financial firms will buy as much as $40 billion worth of banks' soured, mortgage-linked investments. That amount is far below the potential $1 trillion in assets that the government originally hoped to take off the banks' books through the program and another that would have targeted bad loans.

The problem assets helped spark the financial crisis as they lost value and banks became unable to sell them. They have been weighing down banks' balance sheets - one reason the industry has had trouble providing the credit necessary to support an economic recovery.

The number of banks on the FDIC's list of problem institutions leaped to 305 in the first quarter - the highest number since 1994 during the savings and loan crisis - from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.

The May closing of struggling Florida thrift BankUnited FSB is expected to cost the insurance fund $4.9 billion, the second-largest hit since the financial crisis began. The costliest was the July 2008 seizure of big California lender IndyMac Bank, on which the insurance fund is estimated to have lost $10.7 billion.

The largest U.S. bank failure ever also came last year: Seattle-based thrift Washington Mutual Inc. fell in September, with about $307 billion in assets. It was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.
By AP Business Writer Marcy Gordon

[pozjetsfan]

As a business professional, I have concluded that the FDIC is scraping the bottom of the barrel to assume it's continued path of financial domination at the cost of the american taxpayers. How the group could shut down 57 federally insured banks tells me that the "pork barrel recession" we are facing is no closer to the end as it is to the beginning. Common sense should tell you that the US banking industry is shaking it's tail feathers to attract attention from potential suitors and no one is finding them very pretty. The lethargy on display staggers me. It seems logical, to a fault, that the Obama Administration has placed a premium on retaining the rights to profit from consumer lack of information. Naturally, it will be denied and buried in a bureaucratic trash can and tossed out with the rest of our governments promises. I remember from my civics class in high school that our government is for the people and by the people. I think we lost that focus and it's no more a fairy tale than is Wee Willy Winky. Our social structure is coming apart at the seems and I believe that President Obama has little to do with what is actually going on. His puppet regime was selected by the folks who supported and sponsored his election the most and consequently an alternative form of government has taken over this country. I can be judgemental because it is my inalienable right to do so. However, the truth behind our countrys subsequent use of proliferated funds is staring Obama right between the eyes. I can't wait to see how this all plays out because as you know, truth is so much stranger than fiction.....to be continued

[r9119111]

cpqdk07191969:

I get it now. You are being paid to post your crap. For America, I won't even repeat your posts.

[reality42]

Everything is going to plan and things are great.
to big to fail banks which caused this world melt down are rewarded by goverment with tax payers money to be strong again to take market share from the smaller banks which were running a bank like the Canadian banks run theres.
Soon ever thing will be great and best ever earnings as the American people struggle for years to come.
Say good bye to your high valued house from years passed and don't count on your 401K to be back to where it was ----this will take 8 years because the market will bounce sideways for that long.
To Big to fail American companys are heading out to make there money out of North America

[sashenka1]

The str8 people of this country have ridiculed and prosecuted and dragged behind pick up trucks! Now, consider more serious situations.

[pozjetsfan]

I did not know that our country's current collapse is an orientation issue. I'm str8 and realize that our alternative society is still just as much a part of this as anyone who lives in America. I adore women and even while my hormones rage out of control, our government is no closer to solving it's problems. A word to the wise, being gay does not discriminate bad debts and over drawn bank accounts. Str8 folks get that too.

[sashenka1]

Oh, People! Get rid of your clothing, lie down and listen to the real news of what is going on!

[nearl451]

Seem like sensible actions to me. I do not understand all the hubbub.

[cpqdk07191969]

It's happening on Obama's watch.

Obama is to blame.

[pravin404]

This Friday 4 banks were closed by FDIC.
So far 57 banks failed in 2009 and 82 since 2008.

http://portalseven.com/Failed-Banks-2009

For California, this was the 8th failure this year with total 13 banks fails since 2008.
Of this 13 failures , 8 banks were with the assets of more than $1 billion. 4 medium sized banks with assets between $100 million and $1 billion. And only 1 small bank with assets less than $100 million.

Check all the bank failures in California at
http://portalseven.com/finance/Failed_Banks_State_Wise.jsp?state=CA


For Georgia, 1 bank failed this Friday , taking total to 15 since 2008 and 11th bank failure this year.
Of this 15 failures, 2 banks were with the assets of more than $1 billion. 13 medium sized banks with assets between $100 million and $1 billion.

Check all the bank failures in Georgia at
http://portalseven.com/finance/Failed_Banks_State_Wise.jsp?state=GA


For South Dakota, the failure of Alerus Financial, N.A. was the first one after First Federal Savings Bank of South Dakota, Rapid City was closed by FDIC on on April 24, 1992.

http://portalseven.com/finance/Failed_Banks_State_Wise.jsp?state=SD

[r9119111]

cpqdk07191969:

Please forgive me for this, I'm saying it as a loving friend.

Could it be that you are a self-centered, egotistical bigot? Before you respond, it might be useful to look these words up in the dictionary. Please believe me, if you are, then you are probably scared to death and your life is run by greed and fear and you are very impressed by your superiority. Peace be with you my friend, may we live in peace and prosperity always.

[cpqdk07191969]

OBAMA = One Big A** Mistake, America!

I saw it on a bumper sticker. So I know it's true.

P.S. it wasn't my car.

[r9119111]

by sharoncalla July 18, 2009 10:57 PM EDT
When you are born your parents bless you with a "name". The president was given the name Barrack Hussein Obama, if he could of chosen his own name, it would of been something so different. Perhaps, Adam, but alas it was out of his hands. He is a man with ideas, but he is given daily reports of what issues are demanding and what he can do. He is told by the congress, what to do. He attends meetings, he appoints people he thinks are the best for the job at hand. He has sleepless nights. He has agreed to take the job of rebuilding the U.S.A. we are in times of despair, a recession, high crime, bank woes, GM woes, could his job get any harder? Do you want the job? He is doing the best he can, trying to fix what he can, and encouraging the uneducated to get educated for the future. I admire him for the very fact that he even "accepted" the challenge. Now say something nice or please say nothing at all. Walk a mile in my shoes applies here. We don't know his stress, what he is told, and ect. It takes everyone working together and no bickering, he said in one of his meetings to the press, "I can't snap my fingers, or push buttons" to get actions. We have to roll up our sleeves and pitch in. We all must take this attitude. Here's to a better tomorrow. Pray for your president, I am sure he would appreciate it. Try really hard to be kind. Kindness is so welcome, everywhere.

by Lawyers-Guns-n-Money July 19, 2009 12:01 AM EDT
by carolhill814 July 18, 2009 4:13 PM EDT
Mr Obama scared me from the very start when you can't tell us your real name and where you were really born that is a real problem evertime he opens his mouth a lie comes out of it and that is a fact.
-------------

What's REALLY scary is people such as yourself may actually exercise their right to vote. Next time you chose to do so, might I suggest a simple coin flip? It'd be a more practical and more informed option for you.


I thank both sharoncalla and Lawyers-Guns-n-Money for their worthy responses. I also think it wise to take a look iside the oppositions thinking. Those against meaningful change are scared to death. Their world of greed, fear and superiority is crumbling before their eyes. I would like to include them in America's renewal after being politically hijacked by a band of self motivated and ruthless extremists, however their only option is to be deceptively obstructionistic.

[cpqdk07191969]

Those against meaningful change are scared to death.
-----------------

You mean, this kind of change:

Barry(Marion) Spitzer Geithner Daschle Richardson Blago Burris Edwards Kilpatrick Mahoney(followed Foley on morality crusade, then had affair) Kennedy Clinton

Obama's blunders:
ill fated plan to close Gitmo, getting spanked by his own party in Congress
Geithner Daschle Richardson
"Special Olympics" gaffe
"punch drunk" TV interview
Capt Phillips taken hostage
N Korea weapons testing, launched seven missiles in one day on 7/4/2009
NYC "photo op" flight
cancel F-22 program
bow to Saudi king
continuing Bush policies on drones, wiretaps, Gitmo detainees, free trade
GM debacle
Appointed a racist bigot to the Supreme Court
Appointed an obese woman to be Surgeon General

Just plain embarassing:
Carter

Oh, ya. I'M SHAKIN'.....!

ROTFLMAO!

[cpqdk07191969]

by carolhill814 July 18, 2009 4:13 PM EDT
Mr Obama scared me from the very start when you can't tell us your real name and where you were really born that is a real problem evertime he opens his mouth a lie comes out of it and that is a fact.
-------------

Excellent post! We should have paid more attention to his refusal to identify himself or his true origins.

OBAMA = One Big A** Mistake, America!!!