Four bank failures bring U.S. total to 114 for the year

By John Letzing, MarketWatch


SAN FRANCISCO (MarketWatch) -- Four banks were closed by U.S. regulators Friday, bringing the total number of failures for the year to 114 and punching a more than $400 million hole in the federal deposit-insurance fund, as the effects of the credit crisis continue to ripple through the financial system.

Chicago-based ShoreBank, which had $2.16 billion in assets and $1.54 billion in deposits as of the end of June, was closed by regulators, according to the Federal Deposit Insurance Corp.

ShoreBank's failure will cost the deposit-insurance fund $367.7 million, the FDIC said.

Martinsville, Va.-based Imperial Savings and Loan was also closed. Imperial Savings and Loan had $10.1 million in deposits as of June 30, the FDIC said, and its failure will cost the deposit-insurance fund $3.5 million.

Two Florida banks -- Bartow-based Community National Bank and Ocala-based Independent National Bank -- were also closed by regulators.

Community National Bank had $63.7 million in deposits, and its failure will cost the deposit-insurance fund $10.3 million; Independent National Bank had $141.9 million in deposits, and its closure will cost the fund $23.2 million, the FDIC said.

John Letzing is a MarketWatch reporter based in San Francisco.

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