First Bank of Idaho Closed by Federal Regulators

Bank failure #29. First Idaho is the fourth closed in a single day.

U.S. Bank, Minneapolis, Minnesota, Assumes All of the Deposits of First Bank of Idaho, Fsb, Ketchum, Idaho.

From FDIC: First Bank of Idaho, FSB, Ketchum, Idaho, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank, Minneapolis, Minnesota, to assume all of the deposits, excluding those from brokers, of First Bank of Idaho.

As of December 31, 2008, First Bank of Idaho had total assets of approximately $488.9 million and total deposits of $374.0 million. U.S. Bank paid a premium of 0.55 percent to acquire the deposits of First Bank of Idaho.

In addition to acquiring the failed banks deposits, U.S. Bank agreed to purchase approximately $17.8 million in assets. The FDIC will retain any remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $191.2 million. U.S. Bank’s acquisition of the deposits of First Bank of Idaho was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives. First Bank of Idaho is the 29th bank to fail in the nation this year and the first in the state.

Idaho’s bank closure follows that of other banks in Georgia, Michigan and California on Friday.

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