UPDATED: Includes the seven banks seized by the FDIC over the holiday weekend. Since the FDIC began publishing the failed bank list in 2000, 74% of the banks on the list were placed there during this recession.
The Federal Deposit Insurance Corp. seized two banks in Illinois Friday evening.
Thirty six FDIC insured banks have failed this year, five in Illinois.
The deposits of Citizens National Bank are due to be acquired by Morton Community Bank as part of a “loss share” agreement with the FDIC. Over the weekend depositors of Citizens National may access their funds through ATMs and check writing. The FDIC estimates the cost to their Deposit Insurance Fund at $106 million.
The FDIC has entered into a purchase agreement with Midland States Bank for the assets of Strategic Capital Bank. Strategic Capital’s only office will reopen on Tuesday, following the Memorial Day holiday, as a branch of Midland States. Strategic Capital’s customers will be able to write checks and access their funds via ATM over the weekend.
Strategic Capital’s failure is expected to cost the Deposit Insurance Fund some $173 million.
Seventy percent of FDIC insured banks which have failed since 2000 have failed during the current recession.
Friday’s Failures to tap FDIC fund for nearly $700 million
Federal Deposit Insurance Corp. regulators seized four more banks Friday night bringing the total number of 2009 bank failures to 28.
In all of 2008, during the first year of the recession, 25 U.S. banks failed.
Joining the FDIC’s Failed Banks List on Friday night were:
- First Bank of Idaho, Ketchum, ID
- First Bank of Beverly Hills, Calabasas, CA
- Heritage Bank, Farmington Hills, MI
- American Southern Bank, Kennesaw, GA
The First Bank of Idaho will be acquired by U.S. Bank. The cost to the FDIC’s Deposit Insurance Fund will be $191.2 million. All First Bank branches will reopen by Monday as U.S. Bank branches.
The First Bank of Beverly Hills will not be acquired. The FDIC will mail checks covering insured deposits to bank customers. First Bank of Beverly Hills will cost the Deposit Insurance Fund $394 million.
Heritage Bank branches will reopen on Monday as branches of Level One Bank. FDIC cost for Heritage’s failure is estimated at $71.3 million.
American Southern Bank will be acquired by Bank of North Georgia. The FDIC says American Southern’s failure will cost the Deposit Insurance Fund $41.9 million.