Three More Banks Go Under

Regulators closed three banks Friday, two in Florida and one in Oregon. The number of failures this year now stands at 72, compared to 25 for all of 2008.

The Florida Office of Financial Regulation shut down First State Bank of Sarasota, Fla., and appointed the Federal Deposit Insurance Corp. as receiver. The FDIC arranged for Stearns Bank N.A. of Minnesota to take over all of First State Bank's deposits, its nine branches and most of its assets.

Stearns Bank also agreed to take over the remains of Community National Bank of Sarasota County, which was closed by the Office of the Comptroller of the Currency.

The third bank that failed on Friday was Community First Bank in Prineville, Ore.  Home Federal Bank, of Nampa, Idaho, took over Community First's deposits, its eight branches and most of its assets.

First State Bank, the bigger of the two Florida banks, had $463 million in assets and $387 million in deposits. Stearns Bank agreed to buy $451 million of the failed bank's assets, with $364 million of that amount subject to a loss-sharing arrangement with the FDIC.

Community National Bank, of Venice, Fla., had $97 million in assets and $93 million in deposits. Stearns Bank paid a premium of 0.25 percent to buy the deposits.

It also agreed to take Community National's four branches and $94 million of its assets, with $79 million of that subject to a loss-sharing arrangement.

Stearns Bank is based in St. Cloud, Minn. It has taken over four failed banks since October, in deals arranged by the FDIC. It also has been buying loans from other closed banks through FDIC auctions.

Community First Bank in Oregon had $209 million in assets and $182 million in deposits. Home Federal agreed to buy $191 million of the failed bank's assets, with $155 million of that amount covered by a loss-sharing deal with the FDIC.

The FDIC said the three bank closings would cost its insurance fund an estimated $185 million.