On Friday, the Federal Deposit Insurance Corp (FDIC) took over the Western National Bank in Phoenix, Arizona, with approximately USD 162.9 million in total assets and USD 144.5 million in deposits, and the Premier Community Bank of the Emerald Coast in Crestview, Florida, with USD 126 million in total assets and USD 112.1 million in deposits, reports Reuters.
The Washington Federal Bank in Seattle, Washington, is assuming all the deposits and assets of Western National Bank. Also the Summit Bank, National Association, of Panama City, Florida, is assuming all the deposits and assets of the Premier Community Bank of the Emerald Coast in Crestview.
Experts say bank failures in the United States in 2011 illustrate the problems that small community banks face, many of which have been hard-hit by the country’s sluggish economy and their involvement in the troubled commercial real estate market.
Most of the banks that have failed so far this year have had less than USD 1 billion in assets.
According to the FDIC, the total number of bank failures was 157 in 2010, 140 in 2009, 25 in 2008 and 3 in 2007.