Three failed banks close – 2010 total at 30

State
regulators on Friday closed banks in Louisiana, Florida and New York, bringing
the total number of financial institutions that have failed in the US this year
to 30.

Upon
an agreement with the Federal Deposit Insurance Corp., Home Bank of Lafayette,
Louisiana, agreed to assume all of the deposits of Statewide Bank, of
Covington, La. Home Bank pay the FDIC a premium to assume the deposits and in
addition, it agreed to purchase essentially all of the failed bank assets. The
FDIC and Home Bank entered into a loss-sharing agreement on US$163.5 million of
Statewide Bank’s assets.

Meanwhile,
Home Bancshares Inc.’s Centennial Bank, of Conway, Arkansas, will assume all
deposits of Old Southern Bank, of Orlando, Florida,  Centennial Bank also agreed to buy nearly all
of the failed bank’s assets, and the FDIC entered a loss-share transaction of US$282.7
million of Old Southern Bank’s assets.

Statewide
Bank’s six branches had about US$243.2 million in total assets and US$208.8 million
in deposits. Old Southern’s seven branches had about US$315.6 million in total
assets and about US$319.7 million in deposits.

Earlier
Friday, Valley National Bancorp assumed the deposits of Park Avenue Bank, the
second failed Manhattan bank that the New Jersey company has taken in as many
days. Valley assumed about US$450 million in deposits and US$30 million in
other borrowings and liabilities, and received about US$370 million of loans
that are subject to a loss-share agreement with the FDIC.

Bank
failures in 2010 are continuing where 2009 ended – when regulators closed 140
banks. The figure was only 25 in 2008.

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