WASHINGTON — Three banks totaling $1.9 billion in assets failed late Friday, bringing the year's closure total to 84.
Regulators closed $1 billion-asset Affinity Bank in Ventura, Calif., $459 million-asset Mainstreet Bank in Forest Lake, Minn., and $452 million-asset Bradford Bank in Baltimore.
All depositors were protected in each failure, and acquiring banks took over most of the failed institutions' assets. The resolutions were estimated to cost the Federal Deposit Insurance Corp. a total of $446 million.
Affinity, the ninth failed institution in California this year, had 10 branches that over the weekend will become part of Pacific Western Bank. The acquirer, based in San Diego, agreed to assume all $922 million of Affinity's deposits, and take over virtually all of the failed bank's assets.
Pacific Western and the FDIC entered into a loss-sharing agreement on roughly $934 million of those assets. The FDIC estimated Affinity's failure will cost $254 million.
Meanwhile, Central Bank in Stillwater, Minn., paid a 0.1% premium to assume all $434 million of Mainstreet's deposits, and also agreed to acquire nearly all of the failed bank's assets. Central and the FDIC agreed to share losses on a $268 million pool of those assets. The failure was estimated to cost $95 million.
The nine branches of Bradford, a thrift, will reopen Saturday as part of Manufacturers and Traders Co., which agreed to assume all $383 million of the failed institution's deposits. M&T will also acquire essentially all of Bradford's assets, and share losses with the FDIC from $338 million of those assets.
The thrift's failure was estimated to cost $97 million.