Though the pace of failures briefly slowed earlier this month, it appears to be picking up momentum again, as Friday's failures followed six last week.
All of the collapses were community banks, and combined they held $2.1 billion of assets and are estimated to cost the Deposit Insurance Fund $430.6 million.
The failures on Friday were unusually geographically diverse, with all seven in different states.
Georgia saw its 10th failure of the year with the collapse of $1.01 billion-asset Crescent Bank and Trust Co. of Jasper. The failed bank's $965.7 million of deposits and virtually all of its assets were purchased by Renasant Bank of Tupelo, Miss., which paid a 1% premium to the Federal Deposit Insurance Corp. The bank entered into a loss sharing agreement with the FDIC on $617.4 million of the failed bank's assets.
The Georgia failure was the most expensive of the night and was estimated to cost the Deposit Insurance Fund $242 million.
Florida, which has seen 17 failures this year, added one more to the tally with the collapse of $407.9 million-asset Sterling Bank of Lantana. IberiaBank of Lafayette, La., bought all of Sterling's $372.4 million of deposits and nearly all of its assets. It did not pay a premium to the FDIC.
The bank entered into a loss-sharing agreement with the FDIC on $244.3 million of Sterling's assets. The FDIC estimated the failure will cost $45.5 million.
Federal regulators also shut $139.3 million-asset Williamsburg First National Bank of Kingstree, S.C., which is expected to cost $8.8 million.
First Citizens Bank and Trust Co. of Columbia, S.C., agreed to pay the FDIC a 0.5% premium to buy all of Williamsburg First's $134.3 million of deposits and nearly all of its assets. The bank entered into a loss-sharing agreement on $64.4 million of the failed bank's assets.
It was the fourth failure in South Carolina this year.
The South was not the only region to be hit by failures, with two collapses in the Midwest.
State regulators shut $108 million-asset Community Security Bank of New Prague, Minn. Roundbank of Waseca, Minn., agreed to pay the FDIC a 0.89% premium to assume all of Community Security's $99.7 million of deposits and virtually all of its assets. The failure, which is estimated to cost $18.6 million, was the seventh in the state this year.
Thunder Bank of Sylvan Grove, Kansas, was also shut by state regulators. The Bennington State Bank of Salina, Kansas, agreed to buy most of Thunder Bank's $32.6 million of assets and all of its $28.5 million of deposits. Bennington State Bank did not pay the FDIC a premium.
Thunder Bank's failure is estimated to cost $4.5 million. It was the first failure in the state this year.
Nevada regulators also closed $214 million-asset SouthwestUSA Bank in Las Vegas. The bank's $186.7 million of deposits and $137 million of its assets were bought by Plaza Bank of Irvine, Calif., which did not pay the FDIC a premium.
Plaza Bank and the FDIC entered into a loss-sharing agreement on $111.3 million of the failed bank's assets.
The failure, which was the fourth in Nevada this year, was estimated to cost $74.1 million.
Finally, regulators closed $251 million-asset Home Valley Bank of Cave Junction, Oregon, the second failure in the state this year. South Valley Bank and Trust of Klamath Falls, Ore., paid the FDIC a 1.05% premium to buy all $229.6 million of the failed bank's deposits and most of its assets. The FDIC and South Valley Bank entered into a loss-sharing agreement on $211.6 million of the failed bank's assets.
