The FDIC Deposit Insurance Fund reserve ratio. From the Quarterly Banking Profile:

The Deposit Insurance Fund (DIF) balance increased by $7.2 billion during the third quarter to -$8.0 billion (unaudited), the third consecutive quarterly increase following seven quarters of decline. Assessment income of $3.6 billion and a $3.8 billion negative provision for insurance losses were the primary contributors to the improvement in the DIF balance. Interest earnings, combined with unrealized gains on available-for-sale securities and other net revenue, boosted the balance by another $0.3 billion. Operating expenses reduced the balance by $0.4 billion.

The DIF’s reserve ratio was -0.15 percent on September 30, 2010, up from -0.28 percent at June 30, 2010, and up from -0.16 percent one year earlier. Forty-one FDIC-insured institutions with combined assets of $13.9 billion failed during third quarter 2010, at an estimated cost of $2.3 billion. For the first three quarters of 2010, 127 insured institutions with combined assets of $83.3 billion failed, at a currently estimated cost to the DIF of $19.4 billion.

Improvement!

I feel the need to point out that this isn’t the same as cash on hand, and doesn’t account for the “Full Faith and Credit of the US Government” bit backing your deposits.

(chart lifted from the QBP)

The FDIC Failed Bank List received another update tonight. We’ve now had more bank failures this year than last. 143 and counting.

I’m a bit off due to a night at the pub (it’s now technically Saturday). But this is the first Friday of failures in a few weeks. Only one bank was added to the FDIC Failed Bank List. Horizon Bank of Bradenton, FL has failed. Horizon had $164.6 million in total deposits and will bring an estimated loss to the Deposit Insurance Fund of $58.9 million. The deal required a loss-share agreement between the FDIC and Bank of the Ozarks on $150.4 million of Horizon Bank’s assets.

This was the 119th bank failure of the year.

It’s another active Friday for the FDIC closure teams. Eight banks have been added to the FDIC Failed Bank List:

1. Sonoma Valley Bank, Sonoma, CA - $255.5 million in total deposits and an estimated hit to the Deposit Insurance Fund (DIF) of $10.1 million.

2. Los Padres Bank, Solvang, CA - Hey! A bank from my town failed. They were one of the first banks to stop making their TARP interest payments, so this has likely been in the works for a while. $770.7 million in total deposits and an estimated hit to the DIF of $8.7 million. This deal required a loss-share agreement between the FDIC and Pacific Western Bank on $579.8 million of Los Padres Bank’s assets.

3. Butte Community Bank, Chico, CA - Total deposits of $471.3 million and an estimated hit to the DIF of $17.4 million. This was a twofer, and the next bank was part of the deal. The deal, of course, required a loss-share agreement between the FDIC and Rabobank, National Association on $425.4 million of Butte Community Bank’s assets.

4. Pacific State Bank, Stockton, CA - Total deposits of $278.8 million and an estimated hit to the DIF of $32.6 million. The loss-share agreement covered $249.7 million of Pacific State Bank’s assets.

5. ShoreBank, Chicago, IL - $1.54 billion in total deposits and an estimated hit to the DIF of $367.7 million. The deal required a loss-share agreement between the FDIC and Urban Partnership Bank on $1.41 billion of ShoreBank’s assets.

6. Imperial Savings and Loan Association, Martinsville, VA - $10.1 million in total deposits and an estimated hit to the DIF of $3.5 million.

7. Independent National Bank, Ocala, FL - Total deposits of $141.9 million and an estimated hit to the DIF of $23.2 million. This was also part of a twofer (including the next bank). The deal required a loss-share agreement between the FDIC and CenterState Bank of Florida, N.A. on $119.7 million of Independent National Bank’s assets.

8. Community National Bank at Bartow, Bartow, FL - Total deposits of $63.7 million and an estimated hit to the DIF of $10.3. The loss-share agreement covered $51.9 million of Community National Bank At Bartow’s assets.

It will be another busy weekend for the FDIC teams and the pizza delivery crews.

It’s another busy Friday for the FDIC closure teams. Five banks have been added to the FDIC Failed Bank List:

1. NorthWest Bank & Trust, Acworth, GA - $159.4 million in total deposits and an estimated hit to the Deposit Insurance Fund (DIF) of $39.8 million. This deal required a loss-share agreement between the FDIC and State Bank and Trust Company on $107.6 million of NorthWest Bank and Trust’s assets. Both branches will reopen on Saturday.

2. Bayside Savings Bank, Port Saint Joe, FL - Total deposits of $52.4 million and an estimated hit to the DIF of $16.2 million. This deal required a loss-share agreement between the FDIC and Centennial Bank on $48.3 million of Bayside Savings Bank’s assets.

3. Coastal Community Bank, Panama City Beach, FL -Total deposits of $363.2 million and an estimated hit to the DIF of $94.5 million. This deal required a loss-share agreement between the FDIC and Centennial Bank on $302.8 million of Coastal Community Bank’s assets.

4. The Cowlitz Bank, Longview, WA - $513.9 million in total deposits and an estimated hit to the DIF of $68.9 million. This deal required a loss-share agreement between the FDIC and Heritage Bank on $160.9 million of The Cowlitz Bank’s assets.

5. LibertyBank, Eugene, OR - $718.5 million in total deposits and an estimated hit to the DIF of $115.3 million. This deal required a loss-share agreement between the FDIC and Home Federal Bank on $300.0 million of LibertyBank’s assets.

We didn’t get a single failure this week that didn’t require a loss-share agreement. This is bad news. These deals are necessary for cash flow, but will likely end up with much higher final costs than normal acquisitions.

My sister is in town, so I’m off for the weekend. Ciao.