Bank Closure Friday

Almost every Friday we hear about at least one bank being seized by regulators and this Friday is no exception. Three more banks have bit the dust. This brings this year's total to 32.-Lou

Three more banks taken over by regulators
Closures marks 32nd bank failures this year

SAN FRANCISCO (MarketWatch) -- Regulators on Friday shut down Georgia's Silverton Bank N.A., New Jersey's Citizens Community Bank, and Utah's America West Bank, bringing the number of bank failures this year to 32.

Since the economic downturn began last year, 57 institutions have failed, as the effects of the credit crisis rippled throughout the U.S. economy.
Friday's failures will cost the federal deposit insurance fund more than $1.4 billion.

Atlanta-based Silverton Bank, the sixth bank to fail in Georgia, had $4.1 billion in assets and $3.3 billion in deposits at the time of closing. It operated six regional offices.

The Comptroller of the Currency, which closed the bank, appointed the Federal Deposit Insurance Corp. as receiver.

The bank did not take deposits from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks, the FDIC said in a statement.

The FDIC said it has created a bridge bank, to be called Silverton Bridge Bank, N.A., to allow the client banks to maintain their correspondent banking relationship with the least amount of disruption. The FDIC will operate Silverton Bridge Bank, N.A., to allow preexisting marketing efforts for the bank to continue.

The last FDIC-insured bank to fail in Georgia was American Southern Bank in Kennesaw. It was shut down on April 24.

Citizens Community Bank of Ridgewood, N.J., which had one branch, was closed by the New Jersey Department of Banking and Insurance. As of Dec. 31, the bank had assets of $45.1 million and $43.7 million in deposits.

All deposit accounts have been transferred to North Jersey Community Bank and will be available immediately. Loan customers should continue to make any payments as well, the regulators said.

Layton, Utah-based America West Bank had three branches, $299.4 million in assets and $284.1 million in deposits. Cache Valley Bank, Logan, Utah, will assume the deposits and bank branches.

America West joins MagnetBank of Salt Lake City as the second Utah bank to fail this year.