Yesterday, I posted that Warren Bank was seized on Friday. Now two more banks were seized too. Looks like we will approaching #100 very soon. Ouch!
Regulators closed three more banks on Friday, pushing the number of failures for 2009 closer to the century mark.
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.
Read on.
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.
Read on.
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