Among six financial institutions to recently go belly up were a New York credit union and five banks located throughout California, Florida and Nevada.
Three Florida banks — Bank of Florida-Southeast, Bank of Florida-Southwest and Bank of Florida-Tampa Bay — were all seized Friday by the Florida Office of Financial Regulation. As is done with all federally insured bank failures, the three banks were handed over to the Federal Deposit Insurance Corporation as receiver.
Each of the three banks was owned by Bank of Florida Corp., and each was hit with a FDIC prompt corrective action in March.
In Granite Bay, Calif., Granite Community Bank, NA, was closed by the Office of the Comptroller of the Currency.
“The bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” an OCC statement said. “The OCC also found that the bank incurred losses that depleted its capital, the bank is significantly undercapitalized and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance.”
Granite entered a formal agreement with the OCC in 2008.
Also failing Friday was Sun West Bank, which was previously reported. The Las Vegas-based bank was the 78th bank failure this year.
Earlier this month, Convent Federal Credit Union was placed into liquidation by the National Credit Union Administration. The New York institution was tiny, with just 213 members and less than $0.2 million in assets.
“NCUA made the decision to close Convent Federal Credit Union and discontinue its operation after determining the credit union is insolvent and has no prospects for restoring viable operations,” the NCUA said in a statement.
MortgageDaily.com has tracked the closing or failure of 97 mortgage-related operations so far during 2010.
