Two Banks, Two Credit Unions Closed Feb. 26

Four banking institutions - two banks and two credit unions - were closed by state and federal regulators late this past week.

These latest closings bring to 24 the total number of failed institutions so far in 2010.

Here is a rundown of the latest closings:

Friendship Community Federal Credit Union

The National Credit Union Administration (NCUA) on February 25 liquidated Friendship Community Federal Credit Union of Clarksdale, Mississippi, and accepted Shreveport Federal Credit Union's offer to purchase and assume the credit union.

Shreveport Federal Credit Union purchased and assumed Friendship Community Federal Credit Union's assets, loans and shares, enabling Friendship Community members to continue to receive uninterrupted credit union service. Friendship Community Federal Credit Union's declining financial condition led to its closure and subsequent purchase and assumption by Shreveport Federal Credit Union. At closure, Friendship Community Federal Credit Union had $861,696 in assets and served 685 members.

Shreveport Federal Credit Union is a full service credit union and its new members will have access to a broad array of financial services offered throughout the United States. With assets of $76 million, Shreveport Federal Credit Union serves approximately 14,500 members located throughout the country. The credit union has four branch locations in Louisiana, will maintain an office in Clarksdale, Mississippi, and also serves its members through nearly 4,000 shared service locations nationwide.

Mutual Diversified Employees FCU
The NCUA liquidated Mutual Diversified Employees FCU of Santa Ana, California, and accepted SchoolsFirst Federal Credit Union's offer to purchase and assume the credit union.

SchoolsFirst Federal Credit Union purchased and assumed Mutual Diversified Employees Federal Credit Union's assets, loans and shares, enabling its members to continue to receive uninterrupted credit union service. Mutual Diversified's declining financial condition led to its closure and subsequent purchase and assumption. At closure, Mutual Diversified Employees Federal Credit Union had $6.1 million in assets and served 748 members.

SchoolsFirst Federal Credit Union of Santa Ana, California, is a full service credit union and its members have access to a broad array of financial services. With assets of $8 billion, SchoolsFirst Federal Credit Union serves approximately 433,521 members through 27 branch locations and 6 express centers in Southern California.

Carson River Community Bank
Carson River Community Bank, Carson City, Nevada, was closed by the Nevada Department of Business and Industry, Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank of Nevada, Reno, Nevada, to assume all of the deposits of Carson River Community Bank.

The sole branch of Carson River Community Bank will reopen on Monday as a branch of Heritage Bank of Nevada. Depositors of Carson River Community Bank will automatically become depositors of Heritage Bank of Nevada.

As of December 31, 2009, Carson River Community Bank had approximately $51.1 million in total assets and $50.0 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.9 million.

Rainier Pacific Bank
Rainier Pacific Bank, Tacoma, Washington, was closed by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume all of the deposits of Rainier Pacific Bank.

The 14 branches of Rainier Pacific Bank will reopen during normal business hours as branches of Umpqua Bank. Depositors of Rainier Pacific Bank will automatically become depositors of Umpqua Bank.

As of December 31, 2009, Rainier Pacific Bank had approximately $717.8 million in total assets and $446.2 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $95.2 million.





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