Eight more banks failed last week, bringing the 2010 total to 50. Three of the failures were in Florida, and two were in California. Massachusetts, Michigan and Washington had one bank failure each.
In Florida, the Federal Deposit Insurance Corporation took over Riverside National Bank, First Federal Bank of North Florida and AmericanFirst Bank. TD Bank Financial Group a division of Canadian company TD Bank (TD) took the deposits and nearly all the assets of each. Riverside National had $3.4 billion in assets, with First Federal at $393.3 million and AmericanFirst at $90.5 million.
Center Bank, of Los Angeles, agreed to assume the assets of Oakland-based Innovative Bank, which had $629 million in assets. City Bank, in Lynnwood, Washington, is having its deposits assumed by Whidbey Island Bank, as well as $704.1 million of its $1.1 billion in assets. Connecticut-based People's United Bank (PBCT) is picking up the deposits of Butler Bank in Massachusetts, along with its $268 million in assets.
For Lakeside Community Bank, in Sterling, Michigan, the FDIC couldn't find a buyer, so it will take over the direct deposit operation for federal payments (e.g., Social Security and VA benefits). Lakeside had assets of $53 million.
According to FDIC Chairman Sheila Bair, the number of bank failures is expected to peak this year, slightly exceeding the 140 in 2009. Last year was the worst for bank failures since 1992 and dwarfed the 25 in 2008 and three in 2007.