Five Banks Closed on Sept. 4

2009 Tally Hits 100: 89 Banks, 11 Credit Unions As most U.S. banking institutions prepared to close down for the holiday weekend, five were closed permanently by state and federal regulators on Friday, Sept. 4.

Vantus Bank of Sioux City, Iowa; InBank of Oak Forest, Illinois; First State Bank of Flagstaff, Arizona; and First Bank of Kansas City, Missouri all were closed and acquired by other institutions. Platinum Community Bank of Rolling Meadows, Illinois was shuttered without an acquirer.

These closures raise 2009's running tally of failed institutions to 100 -- 89 banks and 11 credit unions have been closed, acquired or gone into conservatorship since Jan. 1.

Vantus Bank Acquired by Great Southern Bank
Vantus Bank, Sioux City, Iowa, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Vantus Bank.

The 15 branches of Vantus Bank were to reopen on Saturday with normal business hours as branches of Great Southern Bank. Depositors of Vantus Bank will automatically become depositors of Great Southern Bank.

As of August 28, 2009, Vantus Bank had total assets of $458 million and total deposits of approximately $368 million. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase approximately $387 million of the assets. The FDIC will retain the remaining assets for later disposition. The FDIC and Great Southern Bank entered into a loss-share transaction on approximately $338 million of Vantus Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $168 million.

InBank Acquired by MB Financial Bank
InBank, Oak Forest, Illinois, was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of InBank, except certain brokered deposits.

The three branches of InBank were to reopen on Saturday as branches of MB Financial Bank, N.A. Depositors of InBank will automatically become depositors of MB Financial Bank, N.A.

As of August 3, 2009, InBank had total assets of $212 million and total deposits of approximately $199 million. In addition to assuming the deposits of the failed bank, MB Financial Bank, N.A., agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66 million.

First State Bank Acquired by Sunwest Bank
First State Bank, Flagstaff, Arizona, was closed by the Arizona Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of First State Bank.

Due to the Labor Day holiday, the six branches of First State Bank will reopen on Tuesday as branches of Sunwest Bank. Depositors of First State Bank will automatically become depositors of Sunwest Bank.

As of July 24, 2009, First State Bank had total assets of $105 million and total deposits of approximately $95 million. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $47 million.

First Bank of Kansas City Acquired by Great American Bank
First Bank of Kansas City, Kansas City, Missouri, was closed by the Missouri Division of Finance, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Great American Bank, De Soto, Kansas, to assume all of the deposits of First Bank of Kansas City.

The sole branch of First Bank of Kansas City was to reopen on Saturday as a branch of Great American Bank. Depositors of First Bank of Kansas City will automatically become depositors of Great American Bank.

As of June 30, 2009, First Bank of Kansas City had total assets of $16 million and total deposits of approximately $15 million. In addition to assuming all of the deposits of the failed bank, Great American Bank agreed to purchase all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6 million.

Platinum Community Bank Closed
The FDIC approved the payout of the insured deposits of Platinum Community Bank, Rolling Meadows, Illinois. The bank was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver.

The FDIC will mail customers checks for their insured funds on Tuesday, September 8. Platinum Community Bank, as of August 29, 2009, had total assets of $345.6 million and total deposits of $305.0 million.

The FDIC entered into an agreement with MB Financial Bank, National Association, to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments.

The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $114.3 million.





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