Three More U.S. Banks Closed

Regulators seized three more U.S. banks on Friday, bringing the tally of failures to 4 this year, following 140 closures in 2009, as the bank industry continues to struggle under the weight of deteriorating loans.

– The biggest bank to close on Friday was Barnes Banking Company of Kaysville, Utah, which had assets of $827.8 million and deposits of $786.5 million.

Since no other bank agreed to assume the insured deposits of Barnes Banking, the FDIC created the Deposit Insurance National Bank of Kaysville (DINB), which will remain open until February 12, 2010 to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

The total cost to FDIC’s Deposit Insurance Fund is expected to be
$271.3 million.

Barnes Banking Company is the fourth bank to fail this year and the first in Utah. The last FDIC-insured institution closed in the state was America West Bank, Layton, on May 1, 2009.

– Another bank to close on Friday was Town Community Bank and Trust of Antioch, Illinois, which had $69.6 million in total assets and $67.4 million in total deposits. The First American Bank of Elk Grove Village, Illinois, assumed all of the deposits of Town Community Bank and Trust.

The total cost to FDIC’s Deposit Insurance Fund is expected to be
$17.8 million.

Town Community Bank and Trust is the second bank to fail in the nation this year, and the first in Illinois. The last FDIC-insured institution closed in the state was Independent Bankers’ Bank, Springfield, on December 18, 2009.

– St. Stephen State Bank of St. Stephen, Minnesota, was the third bank to close Friday.  The bank entered into a purchase agreement with First State Bank of St. Joseph of St. Joseph, Minnesota, to assume all of its deposits.

As of September 30, 2009, St. Stephen State Bank had $24.7 million in total assets and $23.4 million in total deposits.

The total cost to FDIC’s Deposit Insurance Fund is expected to be $7.2 million.

St. Stephen State Bank is the third bank to fail in the nation this year, and the first in Minnesota. The last FDIC-insured institution closed in the state was Prosperan Bank, Oakdale, on November 6, 2009.