Regulators close three more banks

Regulators closed three banks Friday, bringing the total number of failures for the year to 149.

 

The biggest bank to go under was First Banking Center, of Burlington, Wis., with $664.8 million in deposits and $750.7 million in total assets. The Federal Deposit Insurance Corp. arranged for First Michigan Bank, of Troy, Mich., to take over the failed bank's 17 branches, all of its deposits and virtually all of its assets.

 

The Federal Reserve issued a "prompt corrective action'' order  against First Banking Center in August, giving it 60 days to raise additional capital or find a buyer or merger partner.

 

First Michigan paid a 0.5 percent premium for First Banking Center's deposits, and the FDIC agreed to share in any losses on $516.6 million of the assets.

 

The other two banks shut down this week were Gulf State Community Bank, of Carrabelle, Fla., and Allegiance Bank of North America, based in Bala Cynwyd, Pa. Both of those banks also had been operating under regulatory orders.

 

Centennial Bank, of Conway, Ark., acquired Gulf State's five branches, along with its $112.2 million in deposits and $112.1 million in assets.

 

Centennial did not pay a premium for the failed bank's assets. It got a loss-sharing deal on $84.4 million of Gulf State's assets.

 

VIST Bank, of Wyomissing, Pa., took over Allegiance Bank, which had five branches, $92 million in deposits and $106.6 million in assets. It paid a 0.5 percent premium for the deposits, and the FDIC agreed to share losses on $86.2 million of the assets.

 

The FDIC said the three closings would cost its deposit insurance fund an estimated $199.5 million.

 

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