Regulators closed two community banks in Florida, and one in Oregon, Friday evening to bring the year's failure total to 72.
The Florida closures were the sixth and seventh in the Sunshine State this year. The state's banking regulator shuttered $463 million-asset First State Bank in Sarasota, and the Office of the Comptroller of the Currency closed $97 million-asset Community National Bank of Sarasota County in Venice.
The Federal Deposit Insurance Corp. sold most of the two banks' holdings to Stearns Bank in St. Cloud, Minn. Stearns assumed the nonbrokered portion of First State's $387 million in deposits (the FDIC will pay $8 million in brokered funds directly), and paid a 0.25% premium for Community National's $93 million in deposits.
Stearns also bought virtually all of the two banks' assets, and agreed to share losses with the FDIC on large chunks of their portfolios. The loss-sharing deals cover $364 million of First State's assets, and $79 million of Community National's assets.
The failures of First State and Community National were estimated to cost the government, respectively, $116 million and $24 million, the FDIC said.
Later in the evening, Oregon's bank regulator closed $209 million-asset Community First Bank in Prineville. Home Federal Bank in Nampa, Idaho, agreed to assume most of the failed bank's $182 million in deposits. (The FDIC will pay depositors $31 million in brokered funds). Home Federal will also take over 94% of Community First's assets, and share losses with the FDIC on $155 million of those assets.
The FDIC estimated the failure's cost to be $45 million.