US regulators have closed seven more banks, pushing the 2010 total to 103, making it the second year in a row in which over 100 lenders have been closed.
The Federal Deposit Insurance Corp. (FDIC) announced Friday it has closed seven small banks with the largest, Crescent Bank and Trust, having about $1.01 billion in total assets and $965.7 million in total deposits, Reuters reported.
This year’s bank closures are occurring at a faster pace than in 2009 when the 100 mark was not reached until October.
The FDIC released a report last month on the overall health of the country’s banking industry, saying that it saw improvements, but economic threats were still lurking.
The corporation said the failures would cost its insurance fund $431 million.
The recovery of the community banking industry has lagged the recovery of the overall US economy.
FDIC Chairman Sheila Bair said earlier in July that 2010 is going to be the peak year for bank failures in the US.
Since 2009, more than 240 banks have failed in the United States.
“The remaining shakeout will be geographically concentrated and much more restricted to smaller institutions,” said Steve Reider, president of Bancography, a consulting firm based in Birmingham, Alabama, Bloomberg reported.
Georgia, Illinois and Florida are among the states hardest hit by the banking crisis.
The failures come as reports say the US budget deficit will hit an all-time high in the 2010 fiscal year.