Two failures in Florida, including the collapse of Naples-based Orion Bank, and another in California late Friday brought the year's total to 123. The Federal Deposit Insurance Corp. estimated the losses from the three failures would total nearly $1 billion.
Orion's seizure came the same day the Federal Reserve Board issued a harsh order against the $2.7 billion-asset bank, alleging former chief executive Jerry Williams had lied to examiners about the bank's capital.
Regulators also closed $728 million-asset Century Bank FSB in Sarasota. In both Florida takeovers, which stretched the state's failure total this year to 11, Iberiabank in Lafayette, La., was the acquirer.
Regulators also closed the $134 million-asset Pacific Coast National Bank in San Clemente, Calif.
The Fed order against Orion, which was dated Monday, called for Williams' ouster. The central bank alleged Williams allowed Orion to make unsafe loans after it had reached a lending limit imposed by the state, and the bank provided financing for investors in the bank, even though Williams had told examiners the capital had been raised "without any financing."
Given that Williams "filed materially inaccurate regulatory reports," the Fed said, "these actions show that the management of the bank would be improved without Williams' service as a senior executive officer or director of the bank."
Iberiabank won bids for the two Florida institutions under favorable terms, receiving a 1.5% discount from the FDIC on Orion and Century's deposits.
With Orion, the acquirer took control of $2.1 billion of deposits and 78% of the assets, agreeing to share losses with the FDIC on $1.9 billion of assets. The failure's cost was estimated at $615 million.
Century, meanwhile, failed with $631 million in deposits. Iberiabank will assume those as well as acquire 97% of its assets. The buyer and the FDIC will share losses on $656 million of those assets. Losses to the government were estimated at $344 million.
The FDIC said Pacific Coast's failure – the 15th in California this year – would cost about $27 million. Sunwest Bank in Tustin agreed to assume the failed bank's $131 million of deposits, and acquire virtually all of its assets. Sunwest did not pay a deposit premium.