Three more banks and two thrifts in U.S. fail, tally reaches 89 this year
The recession continues to weigh heavily on banks as U.S. regulators on Friday shuttered five more institutions in Missouri, Illinois, Iowa and Arizona. This takes the total number of failed federally insured banks this year to 89, compared to 25 in 2008 and 3 in 2007.
Among the failed institutions two were in Illinois – Oak Forest-based InBank, with $212 million in assets and $199 million in deposits, and Rolling Meadows-based Platinum Community Bank, with $346 million in assets and $305 million in deposits.
The other three were Kansas City, MO-based First Bank of Kansas City, with $16 million in assets and $15 million in deposits; Sioux City, IA-based Vantus Bank with $458 million in assets and $368 million in deposits and Flagstaff, AZ-based First State Bank, with $105 million in assets and $95 million in deposits.
Failure of these institutions represents another sizable impact on the Federal Deposit Insurance Corporation's (FDIC) fund for protecting customer accounts, as it has been appointed receiver for these banks. The failure of First Bank of Kansas City is expected to cost the deposit insurance fund an estimated $6 million and InBank's failure will cost the insurance fund $66 million. Also, failures of Platinum Community Bank and First State Bank are expected to cost about $114 million and $47 million, respectively.
The FDIC insures deposits at 8,195 institutions with roughly $13.5 trillion in assets and when a bank fails, it reimburses customers for deposits of up to $250,000 per account. The outbreak of failing financial institutions has significantly stretched the regulator's deposit insurance fund. At June 30, 2009, the fund corpus fell to $10.4 billion, the lowest since 1993, from $13.0 billion in the prior quarter.
De Soto, KS-based Great American Bank has agreed to acquire the deposits of First Bank of Kansas City.
Springfield, MO-based Great Southern Bank, a subsidiary of
Great Southern Bancorp (
GSBC), will acquire Vantus Bank's deposits. The FDIC and Great Southern Bank agreed to share losses on about $338 million of Vantus Bank's assets.
Chicago-based MB Financial Bank, a subsidiary of
MB Financial (
MBFI), will acquire almost all of the deposits of InBank. However, some brokered deposits will not be assumed by MB Financial Bank.
First State Bank's deposits will be acquired by Tustin, CA-based Sunwest Bank.
However, the FDIC did not find a bank to acquire Platinum Community Bank's branches or deposits.
