Regulators seize banks in Florida and Washington

Regulators closed two banks Friday, pushing the total for the year to 129.

The latest casualties were Wakulla Bank, of Crawfordville, Fla., and Shoreline Bank, of Shoreline, Wash.

Shoreline had been operating since May under a "prompt corrective action'' order that required it to raise additional capital or find a buyer or merger partner. Wakulla also had been the subject of regulator action because of its weakened state.

The Federal Deposit Insurance Corp. arranged for Centennial Bank, of Conway, Ark., to absorb Wakulla's 12 branches, its $386.3 million in deposits and its $424.1` to million in assets.

Centennial did not pay a premium for the deposits, and the FDIC agreed to share in any losses on $212.7 million of the assets.

The holding company previously acquired three other failed banks in Florida through deals with the FDIC.

GBC International Bank, of Los Angeles, took over Shoreline's three branches and its $100.2 million. GBC International also bought $65.7 million of the failed bank's $104.2 million in assets. The FDIC agreed to share in any losses on $49.7 million of the acquired assets.

The FDIC said Wakulla's failure would cost its deposit insurance fund an estimated $113.4 million. It said Shoreline's closing would cost the fund $41.4 million.

Although the pace of bank closings has slowed in recent months, the total for the year is still running well ahead of last year's total. At this time in 2009, regulators had seized 98 banks.

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