Six U.S. banks shut down: 105 have failed in 2009

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The number of U.S. bank failures in 2009 ran past the 100-level mark late Friday, when regulators shut down six banks.

Regulators closed: Partners Bank of Naples, Fla.; American United Bank of Lawrenceville, Ga.; Hillcrest Bank Florida of Naples, Fla.; Flagship National Bank of Bradenton, Fla.; Riverview Community Bank of Otsego, Minn.; and Bank of Elmwood of Racine, Wis.

Banks in Georgia account for one-fifth of all U.S. banks to close this year. It is the worst year on record for U.S. bank failures since 1992. In this cycle, Georgia has been hit hardest, with 20 failures, followed by Illinois with 16, California with 10 and Florida with nine.

American United is the 20th Georgia bank to be shut down. As of Aug. 11, American United had total assets of $111 million and total deposits of $101 million. It had one branch. Ameris Bank will take over the branch, deposits and assets.

Partners became the 100th bank to fail when it was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corp. as receiver.

As of Sept.30, Partners Bank had total assets of $65.5 million and total deposits of $64.9 million. It has two branches. Hillcrest Bank has six branches. As of Oct. 1, it had $83 million in assets and $84 million in deposits.

Fort Lauderdale, Fla.-based Stonegate Bank will take over the branches and assume all of the deposits of Partners Bank and Hillcrest.

First Federal Bank of Florida, Lake City, Fla., will take over the four branches, $190 million of assets, and $175 million of deposits of Flagship National Bank.

Bank of Elmwood became the first Wisconsin bank to fail in 2009. It had total assets of $327.4 million, deposits of $273.2, and five branches as of Sept. 30. These will be assumed by Tri City National Bank.

Riverview Community Bank is the sixth Minnesota bank to fail this year.

Riverview had total assets of $108 million, deposits of $80 million, and two branches. Central Bank, Stillwater, Minn., will take over the operations.

At all those banks shut down Friday, regulators said, customers will be able to access their funds through the weekend using checks or debit cards.

Combined, Friday’s six bank failures will cost the deposit insurance fund $297.7 million.


(c) 2009, MarketWatch.com Inc. Source: McClatchy-Tribune Information Services.