Failures in 2009 shot past the 100-mark late Friday as regulators swooped into seven community banks in the Midwest and southeast.
The evening began with the failure of $65 million-asset Partners Bank in Naples, Fla., bringing the year's toll to 100 for the first time since the savings and loan crisis. When all was said and done, banks in five states totaling over $1 billion in assets were closed, leaving the government with $357 million more in losses.
The collapse marked the first year of triple-digit failures year since 122 institutions collapsed in 1992. Since then, the most failures in a given year were 41 — in 1993.
Partners, a thrift, was one of three Florida institutions to fail Friday. Regulators also closed $83 million-asset Hillcrest Bank in Naples and $190 million-asset Flagship National Bank in Bradenton.
The remaining four failed banks were: $108 million-asset Riverview Community Bank in Otsego, Minn.; $327 million-asset Bank of Elmwood in Racine, Wis.; $111 million-asset American United Bank in Lawrenceville, Ga.; and $279 million-asset First Dupage Bank in Westmont, Ill.
The Federal Deposit Insurance Corp.'s busy night came after relative quiet for the agency. Only one institution had failed since Oct. 2. But the seven failures Friday matched the most the government has closed in a single night since the crisis began. (Seven banks were closed on both July 2 and July 24).
Partners' operations were quickly transferred to Stonegate Bank in Fort Lauderdale. The acquirer did not pay a premium to assume Partners' $65 million of deposits and virtually all of its assets. The Federal Deposit Insurance Corp. estimated the failure's price tag at $28.6 million.
Stonegate also agreed to assume Hillcrest's $84 million of deposits for a 0.5% premium and take $28 million of its assets. The FDIC estimated the failure's losses to the government at $45 million.
Flagship was closed by the Office of the Comptroller of the Currency. The FDIC sold its $175 million in deposits to First Federal Bank of Florida in Lake City without a premium. The acquirer also agreed to take virtually all of the assets, but will share losses with the FDIC on roughly $130 million of those assets. The FDIC estimated the failure's price tag at $59 million.
But the biggest failure of the night belonged to Bank of Elmwood. Tri City National Bank in Oak Creek, Wis., agreed to acquire all $273 million of deposits held by the failed institution, and purchase most of its assets. The FDIC said the failure would cost approximately $101 million.
Meanwhile, First Dupage's failure was estimated to cost $59 million. The Illinois bank's only branch will reopen Saturday as part of First Midwest Bank in Itasca, which will pay a 0.75% premium to assume all $254 million of the failed bank's deposits. First Midwest will also acquire virtually all of First Dupage's assets, but will share losses with the FDIC on a $247 million pool.
Earlier, the FDIC transferred most of American United's assets – and all $101 million of its deposits – to Ameris Bank in Moultrie, Ga. The acquirer paid a 1.02% deposit premium, and agreed to share losses with the FDIC on roughly $92 million of the failed bank's assets. The failure was estimated to cost the government $44 million.
Riverview's collapse was estimated to cost the government $20 million. Its two branches will reopen Saturday as part of Central Bank, located in Stillwater, Minn. The acquirer will assume all $80 million of Riverview's deposits, and take control of virtually all of its assets while sharing losses with the FDIC on a $75 million portion.