* Six small banks closed
* Took until October in 2009 to reach 100 failures
(Updates number of banks, adds detail on assumption of
By Corbett B. Daly
WASHINGTON, July 23 U.S bank failures reached
102 so far in 2010 on Friday as regulators seized six small
banks, a faster pace of closures than last year when the
century mark was not reached until October.
Bank failures are expected to peak this quarter, with the
industry slowly recovering from large portfolios of bad loans,
many tied to commercial real estate.
The banks seized on Friday were Sterling Bank of Lantana,
Florida; Crescent Bank and Trust Company of Jasper, Georgia;
Williamsburg First National Bank of Kingstree, South Carolina;
Thunder Bank of Sylvan Grove, Kansas; Community Security Bank,
New Prague, Minnesota and SouthwestUSA Bank of Las Vegas,
Nevada, according to the Federal Deposit Insurance Corp.
The largest of the six banks was Crescent Bank and Trust
with 11 branches and about $1.01 billion in total assets and
$965.7 million in total deposits. The smallest was Thunder Bank
with two branches and just $32.6 million in total assets and
$28.5 million in deposits.
The FDIC estimated the six failures would add about $394
million to the tab for its deposit insurance fund.
The FDIC late last month gave an update on the overall
health of the bank industry, saying it sees improvements, but
economic threats are still lurking.
The agency, which insures individual accounts up to
$250,000, updated its estimates of the cost of bank failures,
now expecting a $60 billion hit to its insurance fund from 2010
The recovery of the community bank industry has lagged the
bounceback of Wall Street and the healing in the overall
IBERIABANK Corp (IBKC.O) agreed to assume all of the
deposits of Sterling Bank, the FDIC said.
(Reporting by Corbett B. Daly; Additional reporting by Karey
Wutkowski; Editing by Tim Dobbyn)