Houses Bank Foreclosures by Failed Banks in Ca, Fl

by Simon Lindsay on Foreclosure Crisis

Large numbers of houses bank foreclosures have pushed four more banks in Florida and in California to failure, driving the total of failed banks in the U.S. to 124 banks so far this year.

This month, Commerce Bank, Orion Bank and Century Bank in Florida and Pacific Coast National Bank in California were closed by the Federal Deposit Insurance Corporation after their losses from residential and commercial real estate loan defaults and foreclosures pushed down their capital to bottom levels.

Orion Bank in Naples was acquired by Louisiana-based IberiaBank, which in turn signed a loss-share deal with the FDIC on about $1.9 billion in Orion assets. Orion had had $2.7 billion in total assets and about $2.1 billion in total deposits as of the end of October.

IberiaBank also acquired the failed Sarasota federal savings bank, Century Bank, which had $728 million in total assets and about $631 million in total deposits.

Pacific Coast National Bank in San Clemente was acquired by Tustin-based Sunwest Bank. As of the end of August, Pacific Coast Bank had $134.4 million in total assets and $130.9 million in total deposits. Since Sunwest agreed to acquire essentially all the deposits and assets of Pacific Coast, it did not buy the deposits and assets at a premium.

The 124th bank to collapse nationwide largely because of houses bank foreclosures is Commerce Bank, which is based in Fort Myers in Southwest Florida. It was the 12th bank closed by the Florida Office of Financial Regulation and the FDIC this year.

FDIC chose Central Bank in Stillwater, Minnesota to acquire all the deposits and assets of Commerce Bank, including its sole branch. Compared to other banks that failed recently, Commerce Bank is small, having only $79.7 million in total assets and about $76.7 million in total deposits. Central Bank also did not acquire the assets at a premium since it agreed to buy essentially all deposits and assets.

The FDIC signed loss-share agreements in all the bank assumption transactions, absorbing millions in losses. It is estimated that the FDIC will pay about $986 million to the depositors of Pacific Coast, Orion Bank and Century Bank and will pay $23.6 million to the depositors of Commerce Bank.

Based on bank data, houses bank foreclosures clobbered banks in Florida, California and Georgia, which are all in the top eight in a chart of foreclosure rates in October.

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