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Regulators Close Florida Bank; Failure Toll Rises To 23 In 2012

The Federal Deposit Insurance Corp. or FDIC, announced Friday the shuttering of a bank in Florida, taking the count of U.S. bank closures in 2012 to 23, after 92 in 2011 and the 157 bank closures in 2010. It was Florida's third bank failure so far this year.

Security Bank, of North Lauderdale, Florida, was closed by the state's Office of the Comptroller of the Currency. Banesco USA, of Coral Gables, Florida, agreed to take over the failed bank and its three branches as part of a purchase-and-assumption deal with the Federal Deposit Insurance Corp.

As of March 31, 2012, Security Bank had about $101 million of total assets and $99.1 million of total deposits at the end of March. Banesco agreed to assume all of the failed bank's deposits and buy essentially all of its assets.

The FDIC estimates the cost of the latest bank failure to the Deposit Insurance Fund will reach $10.8 million.

On an average, 13 banks have failed per month in 2010, with bank closures for 2011 averaging only nearly eight per month. The 92 bank closures in 2011 were down from 157 in 2010 and 140 in 2009, but nearly four times of the 25 bank failures in 2008. Only three banks failed in 2007. The highest and all time record for bank closures was in 1989 when 534 banks closed, followed by 181 bank failures in 1992.

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