The latest casualties were Warren Bank, in Warren, Mich.; Jennings State Bank, in Spring Grove, Minn., and Southern Colorado National Bank, in Pueblo, Colo. So far this year, 98 financial institutions covered by the Federal Deposit Insurance Corp. have gone under, compared to 25 in 2008.
Michigan's banking regulators shut down Warren Bank and appointed the FDIC as receiver. The FDIC arranged for Huntington National Bank, of Columbus, Ohio, to take over the failed bank's six branches and its $501 million in deposits.
Huntington National paid a premium of 0.27 percent for the deposits. It also agreed to buy $83 million of Warren Bank's $538 million in assets. The FDIC said it would retain the remaining assets and dispose of them later
Minnesota regulators seized Jennings State Bank and named the FDIC as receiver. It struck a deal with Central Bank, in Stillwater, Minn., to take over the closed bank's two branches, its $52.4 million in deposits and its $56.3 million in assets.
Central Bank and the FDIC entered into a loss-sharing deal on $37.7 million of those assets, meaning that the FDIC will absorb a large portion of any losses on the loans and investments in that portfolio.
The federal Office of the Comptroller of the Currency shut down Southern Colorado National Bank. The FDIC, which was appointed as receiver, arranged for Legacy Bank in Wiley, Colo., to buy Southern Colorado National's two branches, $31.9 million in deposits and $39.5 million in assets.
Legacy Bank paid a premium of 1 percent on the deposits, and entered into a loss-sharing agreement with the FDIC on $25.5 million of the assets.
0 Comments
Leave a comment