U.S. Bank Failures Rise to 92 this Year with Collapses in Washington, Illinois, and Minnesota

The Federal Deposit Insurance Corporation [FDIC] announced three new bank failures on Friday. Assets of more than $8 billion and deposits of $7.96 billion from the three banks were turned over to new lenders at a total cost of $2.2 billion to the FDIC’s deposit insurance fund [DIF], according to agency statements.

Bank Failure #90

The FDIC was named receiver for Corus Bank, National Association of Chicago, Illinois, after being closed Friday by the Office of the Comptroller of the Currency. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank, N.A.

As of June 30, 2009, Corus Bank, notes the FDIC, had total assets of $7 billion and total deposits of approx. $7 billion. In addition to assuming all of the deposits of the failed bank, FDIC said MB Financial Bank agreed to purchase $3 billion of the assets, comprised mainly of cash and marketable securities. The failure is expected to cost the FDIC’s DIF an estimated $1.7 billion.

Corus Bank is the 90th bank to fail in the nation this year, and the sixteenth in Illinois. The last FDIC-insured institution closed in the state was Platinum Community Bank, Rolling Meadows, on September 4, 2009.

Bank Failure #91

The FDIC was named receiver for Brickwell Community Bank of Woodbury, Minnesota, after being closed Friday by the Minnesota Department of Commerce. To protect the depositors, the FDIC entered into an agreement with CorTrust Bank N.A., Mitchell, South Dakota, to assume all of the deposits of Brickwell Community Bank.

As of July, 24, 2009, Brickwell Community Bank, notes the FDIC, had total assets of $72 million and total deposits of approx. $63 million. The failure is expected to cost the FDIC’s DIF an estimated $22 million.

Brickwell Community Bank is the 91st bank to fail in the nation this year, and the third in Minnesota. The last FDIC-insured institution closed in the state was Mainstreet Bank, Forest Lake, on August 28, 2009.

Bank Failure #92

The FDIC was named receiver for Venture Bank of Lacy, Washington, after being closed Friday by the Washington Department of Financial Institutions. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, NC, to assume all of the deposits of Venture Bank.

As of July 28, 2009, Venture Bank, notes the FDIC, had total assets of $970 million and total deposits of approx. $903 million.The failure is expected to cost the FDIC’s DIF an estimated $298 million.

Venture Bank is the 92nd bank to fail in the nation this year, and the third in Washington. The last FDIC-insured institution closed in the state was Westsound Bank, Bremerton, on May 8, 2009.

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