Regulators on Friday shut down banks in California, Maryland and Minnesota, pushing to 84 the number of bank failures this year amid the soured economy and rising loan defaults.
The Federal Deposit Insurance Corp. took over the three banks: Affinity Bank, based in Ventura, Calif., with about $1 billion in assets and $922 million in deposits; Baltimore-based Bradford Bank, with $452 million in assets and $383 million in deposits; and Mainstreet Bank, based in Forest Lake, Minn., with assets of $459 million and deposits of $434 million.
Pacific Western Bank, based in San Diego, agreed to assume the deposits and assets of Affinity Bank. In addition, the FDIC and Pacific Western agreed to share losses on about $934 million of the failed bank's loans and other assets. Affinity Bank's branches in San Francisco and San Mateo will reopen Saturday as offices of Pacific Western Bank; the remaining branches will reopen Monday, the FDIC said.
Manufacturers and Traders Trust Co., based in Buffalo, N.Y., has agreed to assume the deposits and assets of Bradford Bank. The nine branches of Bradford Bank will reopen Saturday as offices of M&T.
Central Bank, based in Stillwater, Minn., is assuming the deposits and assets of Mainstreet Bank, whose eight branches will reopen Saturday as offices of Central Bank.
In addition, the FDIC agreed to share with M&T losses on about $338 million of Bradford Bank's loans and other assets, and struck a similar agreement with Central Bank for around $268 million of Mainstreet Bank's.
The failure of Affinity Bank is expected to cost the deposit insurance fund an esimated $254 million; that of Bradford Bank about $97 million and that of Mainstreet Bank about $95 million.