US regulators close 3 more banks

Source: Press TV
http://www.presstv.ir/detail.aspx?id=132038&sectionid=3510203

The number of US banks shut down so far this year has risen to 86 as regulators close down three more banks in Florida, Georgia and New Mexico.

The newest bank failures in the US are expected to cost the Federal Deposit Insurance Corporation (FDIC) a total of about $285 million.

In Florida, FDIC has announced that Peninsula Bank of Englewood has been closed, with $644.3 million in assets. Premier American Bank in Miami will assume the deposits of the failed institution, Reuters reported on Friday.

In Savannah, Georgia, the First National Bank has been shut down. It had about $252.5 million in assets. The Savannah Bank, has agreed to assume its deposits, the FDIC said.

In New Mexico, regulators have closed High Desert State Bank in Albuquerque, which had about $80.3 million in assets. First American Bank, in Artesia, New Mexico has agreed to assume its deposits.

Last year, US regulators closed down 140 banks compared with 25 in 2008 and three in 2007. FDIC expects this year's bank failures to exceed last year's tally.

The FDIC said this week that it expects bank failures to cost its insurance fund $60 billion from 2010 through 2014.

Even as an economic recovery buoys profits for big US banks, smaller banks continue to struggle with bad commercial real estate loans.