Regulators on Friday shut down small banks in Florida and Washington state, bringing to 127 the number of U.S. bank failures this year on a wave of loan defaults and economic distress.
The Federal Deposit Insurance Corp. took over Haven Trust Bank Florida of Ponte Vedra Beach, Fla., with $148.6 million in assets and $133.6 million in deposits, and North County Bank, based in Arlington, Wash., with $288.8 million in assets and $276.1 million in deposits.
First Southern Bank, based in Boca Raton, Fla., agreed to assume the assets and deposits of Haven Trust Bank Florida. In addition, the FDIC and First Southern Bank agreed to share losses on $127.3 million of Haven Trust Bank Florida's loans and other assets.
Whidbey Island Bank, based in Coupeville, Wash., is acquiring the assets and deposits of North County Bank. The FDIC and Whidbey Island Bank agreed to share losses on $221.9 million of North County Bank's assets.
The failure of North County Bank is expected to cost the deposit insurance fund $72.8 million.
The failure of Haven Trust Bank Florida is expected to cost the fund $31.9 million. It was the 24th bank in Florida to fail this year.
Florida is among the hardest hit states for bank collapses, as the meltdown in the real estate market brought an avalanche of soured mortgage loans. Also high on the list of failure-heavy states are California, Georgia and Illinois.
With 127 closures nationwide so far this year, the pace of bank failures exceeds that of 2009, which was already a brisk year for shutdowns. By this time last year, regulators had closed 95 banks.