Regulators closed three banks this week in three different states – Virginia, South Carolina and Indiana. With today’s three bank closings, the number of failed banks in 2011 has increased to 61.
The three banks that failed today had total assets of $2.5 billion and resulted in a loss to the FDIC Deposit Insurance Fund of $253.4 million. The 61 banks that have failed in 2011 had total assets of $26.0 billion. Total losses to the FDIC for this year’s banking failures total $5.1 billion.
Indiana experienced its first banking failure of 2011 with the closing of Integra Bank which, by asset size, was the second largest banking failure of the year.
The three failed banks for July 29th are listed below. Please click on the link for detailed information on each bank closing.
Virginia Business Bank, Richmond, VA – Banking Failure #59
Virginia Business Bank had only $95.8 million in assets and was the smallest bank failure this week. The Bank had a very short life span, having been established in 2006. The Bank’s fate was sealed after being unable to complete an attempted stock offering in late 2010 to raise additional capital.
BankMeridian, Columbia, SC – Banking Failure #60
BankMeridian was established in 2006 at the peak of the real estate bubble and rapidly expanded its assets. Management failed to realize the extent of the financial crisis and refused to accept TARP money, believing that BankMeridian was strongly capitalized. At the time of closing, the Bank had $239.8 million in assets.
Integra Bank, Evansville, IN – Banking Failure #61
Integra Bank was the nation’s second largest banking failure of the year. Integra had 52 branches and $2.2 billion in total assets. At the time of closing, Integra still owed the US Treasury $83.6 million which it had borrowed under the TARP program. The failure of this 160 year old institution left shareholders with losses of $600 million. Integra Bank was the first banking failure in Indiana since September 2009.