US authorities closed First Community Bank of Taos, New Mexico, and three other banks on Friday, bringing the total number of foreclosures this year to 11. Last year, 157 banks with total assets of $92 billion failed. That compares with 140 banks failing in 2009 with total assets of $169.7 billion.
The Federal Deposit Insurance Corp announced the following closures: First Community Bank of Taos, New Mexico. Had assets of roughly $2.3 billion as of September 30, 2010. US Bank, National Association, Minneapolis, Minnesota, is to assume all of the deposits.
Evergreen State Bank of Stoughton, Wisconsin. Had assets of about $246.5 million. McFarland State Bank of McFarland, Wisconsin, is to assume the deposits. The First State Bank of Camargo, Oklahoma. Had assets of roughly $43.5 million. Bank 7 of Oklahoma City, Oklahoma, is to assume the deposits. FirsTier Bank of Louisville, Colorado. The FDIC said it took obligations to depositors. Assets were not disclosed.
Community banks continue to be hit hard by the sluggish economic recovery and bad loans on their books, particularly in the commercial real estate sector. Washington Mutual, which had $307 billion in assets when it was seized in September 2008, was the largest bank to fail during the financial crisis.