Three More Banks Fail Bringing Year’s Total To 98

Regulators closed banks in Michigan, Colorado and Minnesota on Friday, pushing U.S. bank failures to 98 this year amid continuing fallout from the worst economic contraction in more than 70 years. Assets of nearly $634 million and deposits of nearly $586 million from the three banks were turned over to new lenders at a total cost of $293.3 million to the FDIC’s Deposit Insurance Fund [DIF], according to agency statements.

Bank Failure #96

– The Federal Deposit Insurance Corp [FDIC] was named receiver for Warren Bank of Warren, Michigan, after being closed Friday by the Office of Financial and Insurance Regulation. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Huntington National Bank, Columbus, Ohio, to assume all of the deposits of Warren Bank.

The FDIC said Warren Bank had, as of July 31, ’09, $538 million in assets and $501 million in deposits. The failure is expected to cost the FDIC’s DIF an estimated $275 million.

Warren Bank is the 96th bank to fail in the nation this year, and the second in Michigan. The last bank closed in the state was Michigan Heritage Bank, Farmington Hills, on April 24, 2009.

Bank Failure #97

– The Federal Deposit Insurance Corp [FDIC] was named receiver for Jennings State Bank of Spring Grove, Minnesota, after being closed Friday by the Minnesota Department of Commerce. The FDIC said it entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Jennings State Bank.

As of July 31, 2009, Jennings State Bank had $56.3 million in assets and $52.4 million in deposits. The failure is expected to cost the FDIC’s DIF an estimated $11.7 million.

Jennings State Bank is the 97th bank to fail in the nation this year, and the fourth in Minnesota. The last bank closed in the state was Brickwell Community Bank, Woodbury, on September 11, 2009.

Bank Failure #98

– The Federal Deposit Insurance Corp [FDIC] was named receiver for Southern Colorado National Bank of Pueblo, Colorado, 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 Legacy Bank, Wiley, Colorado, to assume all of the deposits of Southern Colorado National Bank.

The FDIC said Southern Colorado National Bank had, as of Sept. 4, ’09, $39.5 million in assets and $31.9 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $6.6 million.

Southern Colorado National Bank is the 98th bank to fail in the nation this year, and the third in Colorado. The last bank closed in the state was New Frontier Bank, Greeley, on April 10, 2009.

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