Two More Banks Fail, Making 94 in 2009

The Federal Deposit Insurance Corporation [FDIC] announced two new bank failures on Friday. Assets of nearly $3.2 billion and deposits of over $2.5 billion from the two banks were turned over to new lenders at a total cost of $850 million to the FDIC’s deposit insurance fund [DIF], according to agency statements.

Bank Failure #93, #94:

The FDIC was named receiver for Irwin Union Bank, F.S.B. of Louisville, Kentucky, and Irwin Union Bank and Trust Company of Columbus, Indiana, after being closed Friday by the Office of Thrift Supervision, and the Indiana Department of Financial Institutions, respectively.

To protect depositors, the FDIC entered into a purchase and assumption agreement with First Financial Bank, National Association, Hamilton, Ohio, to assume all of the deposits of the two banks.

As of August 31, 2009, Irwin Union Bank and Trust Company of Colombus, Indiana, had total assets of $2.7 billion and total deposits of approx. $2.1 billion.

As of August 31, 2009, Irwin Union Bank, F.S.B., Louisville, Kentucky, had total assets of $493 million and total deposits of approx. $441 million. The failure for both institutions is expected to cost the FDIC deposit insurance fund an estimated $850 million.

The failure of the two institutions brings the nation’s total number this year to 94. The last banks closed in the respective states were The Rushville National Bank, Rushville, Indiana, on December 18, 1992, and Future Federal Savings Bank, Louisville, Kentucky, on August 30, 1991.

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