Failures of half-dozen banks in 3 states brings year’s toll to 96
Regulators shut down three banks in Florida, two in South Carolina and one in Michigan, bringing to 96 the number of U.S. banks to succumb this year to the recession and mounting loan defaults.
The Federal Deposit Insurance Corp. took over: Woodlands Bank, based in Bluffton, S.C., with $376.2 million in assets; First National Bank of the South, based in Spartanburg, S.C., with $682 million in assets; and Mainstreet Savings Bank of Hastings, Mich., with $97.4 million in assets. The FDIC also seized Miami-based Metro Bank of Dade County, with assets of $442.3 million; Turnberry Bank of Aventura, Fla., with assets of $263.9 million; and Olde Cypress Community Bank of Clewiston, Fla., with assets of $168.7 million.
The pace of bank failures this year outstrips that of 2009: By this time last year, regulators had closed 57 banks. The pace has accelerated as banks’ losses mount on loans made for commercial property and development.