Regulators failed four banks late Friday, pushing the total number of collapses this year to 143.
Closures are now are at their highest point since the savings and loan crisis. With a little under two months left in the year, the total number of collapses in 2010 have already exceeded 2009's total by three institutions.
All told, the four banks held a combined $906 million of assets, and are expected to cost the Deposit Insurance Fund $254.5 million.
The Maryland Office of Financial Regulation started the evening with the failure of $538.3 million-asset K Bank in Randallstown. The Federal Deposit Insurance Corp. entered into a purchase and assumption agreement with the $68.2 billion M&T Bank Corp., which agreed to buy $410.8 million of the failed bank's assets and entered into a loss-sharing agreement for $289 million of those assets. The Buffalo-based bank also agreed to assume K Bank's $500.1 million of deposits without paying a premium.
The FDIC said in a press release that it would retain the balance of K Bank's assets for further disposition. The failure is expected to cost the DIF $198.4 million.
That failure capped a busy week for M&T, which announced Monday that it would purchase the $10.4 billion-asset Wilmington Trust Corp. in a $351 million stock deal.
Elsewhere, the California Department of Financial Institutions seized the $98.6 million-asset Western Commercial Bank in Woodland Hills. The FDIC sold essentially all of Western Commercial's assets to First California Financial Group, Inc. in Westlake Village, which also agreed to pay a 0.5% premium on the bank's $101.1 million deposits.
First California and the FDIC also entered into a loss-sharing agreement on $83.9 million of Western Commercial's assets. Its failure is expected to cost the DIF $25.2 million.
The California regulator also closed the $48 million-asset First Vietnamese American Bank in Westminster. Grandpoint Capital Inc. in Los Angeles agreed to buy essentially all of First Vietnamese's assets and assume all $47 million of its deposits. The bank's failure is expected to cost $9.6 million.
Grandpoint has been a particularly aggressive acquirer this year, announcing 4 open-bank deals since June.
The Washington Department of Financial Institutions also closed the $221.1 million-asset Pierce Commerce Bank in Tacoma. Heritage Financial Corp. in Olympia, Wash., agreed to buy essentially all of its assets from the FDIC and pay a 1% premium on Pierce Commercial's $193.5 million in deposits. Its failure is expected to cost $21.3 million.
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