Bank Failure Friday Claims 3 More Banks

Just another average Friday at the FDIC with 3 banks failing. This week's closures will deplete the FDIC's insurance fund by $454 miilon, better than the last two weeks hit of $ 7 billion. It's almost time for the taxpaers to start paying for failed banks (not that we have not already with Citigroup)-Lou

2009 bank-failure tally rises to 84

SAN FRANCISCO (MarketWatch) -- Three more banks were closed by regulators Friday, bringing the 2009 toll to 84.

The largest of Friday's three closures announced by the Federal Deposit Insurance Corp. was Affinity Bank, based in Ventura, Calif.

Affinity, which had total assets of $1 billion, deposits of $922 million and 10 branches in Northern and Southern California as of July 10, will be taken over by San Diego-based Pacific Western Bank, the FDIC announced.

The FDIC said former Affinity branch offices in San Francisco and San Mateo will be-open Saturday and the rest will re-open on Sunday.

The FDIC said it and Pacific Western entered into a loss-share transaction of approximately $934 million of Affinity Bank's assets.

The federal agency estimated the cost to the Deposit Insurance Fund at $254 million.
Earlier Friday, regulars closed Baltimore-based Bradford Bank and Forest Lake, Minn.-based Mainstreet Bank.

Bradford Bank, the second bank to fail in Maryland this year, had $452 million in assets and $383 million in deposits as of June 30, according to the Federal Deposit Insurance Corp.
Buffalo, N.Y.-based Manufacturers and Traders Trust Company has agreed to assume the failed bank's deposits, the regulator said.

Bradford Bank's failure will cost the deposit-insurance fund $97 million, the FDIC added.
Mainstreet Bank had $459 million in assets and $434 million in deposits as of June 30, the FDIC reported.

Stillwater, Minn.-based Central Bank has agreed to assume the failed bank's deposits. Mainstreet Bank is the second bank to fail in Minnesota this year.

The FDIC estimated that Mainstreet Bank's failure will cost the deposit-insurance fund $95 million.