Regulators closed seven more banks on Friday, prompting the head of the Federal Deposit Insurance Corp. to record a video message reassuring depositors that their money was safe and that the financial system remained strong.
As the number of bank failures this year topped 100, FDIC Chairman Sheila C. Bair noted that most of the roughly 8,200 banks in the United States will survive.
"Some banks continue to face serious challenges, but the overwhelming majority will weather this economic storm,'' she said in her message, which was posted on the FDIC's web site and on Youtube.com.
The latest closings bring the total for the year to 106.
The biggest financial institution to fail this week was Bank of Elmwood, in Racine, Wis. Regulators in that state seized the bank and appointed the FDIC as receiver.
The FDIC arranged for Tri City National Bank, of Oak Creek, Wis., to assume Bank of Elmwood's five branches, its $273.2 million in deposits and its $327.4 million in assets.
Regulators closed three banks in Florida - Flagship National Bank, in Bradenton; Hillcrest Bank Florida, in Naples; and Partners Bank, also in Naples.
The FDIC arranged for First Federal Bank of Florida to assume Flagship National's four branches, $175 million in deposits and $190 million in assets. It agreed to share in any losses on $130 million of those assets.
Stonegate Bank, of Fort Lauderdale, Fla., agreed to take over the remains of Hillcrest Bank and Partners Bank. It acquired Hillcrest's six branches, along with its $84 million in deposits. Stonegate paid a premium of 0.5 percent for those deposits. It also bought $28 million of Hillcrest's $83 million in assets.
Stonegate absorbed Partners Bank's two branches, its $64.9 million in deposits and its $65.5 million in assets. The FDIC also picked Stonegate to take over another failed bank in July.
Georgia regulators shut down American United Bank in Lawrenceville, Ga., and appointed the FDIC as receiver. The FDIC enlisted Ameris Bank, of Moultrie, Ga., to take over American United's single branch, and its $101 million in deposits and $111 million in assets.
Ameris paid a premium of 1.02 percent for American United's deposits. The FDIC and Ameris entered into a loss-sharing deal on $92 million of the failed bank's assets.
The other two banks closed on Friday were First Dupage Bank, in Westmont, Ill., and Riverview Community Bank, in Stillwater, Minn.
The FDIC arranged for First Midwest Bank, of Itasca, Ill., to take over First Dupage's lone office, its $254 million in deposits and its $279 million in assets. The FDIC also agreed to share in any losses on $247 million of those assets. First Midwest paid a premium of 0.75 percent for the deposits.
Central Bank, of Stillwater, Minn., agreed to assume Riverview's two branches, $80 million in deposits and $108 million in assets. It entered into a loss-sharing deal on $75 million of those assets.
So far this year, the FDIC has tapped Central Bank to take over three failed Minnesota banks.
The FDIC said the seven new closings would cost its deposit insurance fund an estimated $404.7 million.
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