4 Banks Closed In A Week by Federal, State Regulators

Four banks in Florida, California, Michigan and Wisconsin were closed by federal and state regulators on Friday, February 11.

These latest developments, which cost the the Federal Deposit Insurance Corp. $145 million, brings the total number of failed banking institutions in 2011 to 19 so far.

These banks are:

Badger State Bank in Cassville, Wisc.; Pacific Canyon National Bank in Palm Springs, Calif.;

Peoples State Bank, Hamtramck, Mich., and, Sunshine State Community Bank, Port Orange, Fla.

Badger State Bank, as of Dec. 31, had  $83.8 million in total assets and $78.5 million in total deposits.

The  Wisconsin Department of Financial Institutions closed Badger State Bank and appointed as receiver the FDIC. The FDIC made a purchase and assumption agreement with Royal Bank of Elroy, Wisconsin. Depositors of Badger State Bank will automatically become depositors at Royal Bank. The cost of the closure to the Deposit Insurance Fund is estimated by the FDIC to be $17.5 million.

The Canyon National Bank was shut down by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Pacific Premier Bank of Costa Mesa, Calif. to protect the depositors. Canyon National had total assets of about $210.9 million and total deposits of about $205.3 million as of December 31. The FDIC estimates that the closure will cost the Deposit Insurance Fund $10 million.

Peoples State Bank in Michigan was closed by the state’s Office of Financial and Insurance Regulation, which appointed the FDIC as receiver. the FDIC entered into a purchase and assumption agreement with First Michigan Bank of Troy, Mich. to protect the depositors and assume all of the deposits of Peoples State Bank.

Peoples State had about $390.5 million in total assets and $389.9 million in total deposits as of Dec. 31. FDIC estimates that the closure will cost the DIF $87.4 million.

Sunshine State Community Bank in Port Orange, Fla. was shut down by the state’s Office of Financial Regulation, which appointed the FDIC as receiver. A purchase and assumption agreement was entered into by the FDIC and the Premier American Bank of National Association, Miami, to assume all of the deposits of Sunshine State Community Bank. Sunshine State had an estimated $125.5 million in total assets and $116.7 million in total deposits. The closure is estimated by the FDIC to cost the DIF $30 million.

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