Three Banks Closed Oct. 2

Latest Tally: 112 Failed Banks, Credit Unions in 2009 Three more banks were closed by state and federal regulators on Friday, Oct. 2, raising the year's tally to 112 failed institutions.

Warren Bank of Warren, Mich., Jennings State Bank of Spring Grove, Minn., and Southern Colorado National Bank of Pueblo, Colo., all were closed and their deposits acquired by other banks.

Earlier in the week, the National Credit Union Administration (NCUA) liquidated two credit unions. In all, 98 banks and 14 credit unions have been closed, acquired or placed into conservatorship so far in 2009. In 2008, a total of 40 institutions failed.

Warren Bank Acquired by The Huntington National Bank
Warren Bank, Warren, Michigan, was closed by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into a purchase and assumption agreement with The Huntington National Bank, Columbus, Ohio, to assume all of the deposits of Warren Bank.

The six branches of Warren Bank were to reopen on Saturday as branches of The Huntington National Bank. Depositors of Warren Bank will automatically become depositors of The Huntington National Bank.

As of July 31, 2009, Warren Bank had total assets of $538 million and total deposits of approximately $501 million. The Huntington National Bank will pay the FDIC a premium of 0.27 percent to assume all of the deposits of Warren Bank. In addition to assuming all of the deposits of the failed bank, The Huntington National Bank will purchase approximately $83 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $275 million. The last FDIC-insured institution closed in the state was Michigan Heritage Bank, Farmington Hills, on April 24, 2009.

Jennings State Bank Acquired by Central Bank
Jennings State Bank, Spring Grove, Minnesota, was closed by the Minnesota Department of Commerce, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Jennings State Bank.

The two branches of Jennings State Bank were to reopen on Saturday as branches of Central Bank. Depositors of Jennings State Bank will automatically become depositors of Central Bank.

As of July 31, 2009, Jennings State Bank had total assets of $56.3 million and total deposits of approximately $52.4 million. Central Bank did not pay the FDIC a premium for the deposits of Jennings State Bank. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets. The FDIC and Central Bank entered into a loss-share transaction on approximately $37.7 million of Jennings State Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.7 million. The last FDIC-insured institution closed in the state was Brickwell Community Bank, Woodbury, on September 11, 2009.

Southern Colorado National Bank Acquired by Legacy Bank
Southern Colorado National Bank, Pueblo, Colorado, was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Legacy Bank, Wiley, Colorado, to assume all of the deposits of Southern Colorado National Bank.

The two branches of Southern Colorado National Bank were to reopen on Saturday as branches of Legacy Bank. Depositors of Southern Colorado National Bank will automatically become depositors of Legacy Bank.

As of September 4, 2009, Southern Colorado National Bank had total assets of $39.5 million and total deposits of approximately $31.9 million. Legacy Bank will pay the FDIC a premium of one percent to assume all of the deposits of Southern Colorado National Bank. In addition to assuming all of the deposits of the Southern Colorado National Bank, Legacy Bank agreed to purchase essentially all of the assets. The FDIC and Legacy Bank entered into a loss-share transaction on approximately $25.5 million of Southern Colorado National Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.6 million. The last FDIC-insured institution closed in the state was New Frontier Bank, Greeley, on April 10, 2009.





Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing bankinfosecurity.eu, you agree to our use of cookies.