State regulators closed Federal Deposit Insurance Corp. (FDIC)-insured institutions in Utah, Minnesota and Illinois Friday.
Barnes Banking Co., Kaysville, Utah, was closed by the Utah Department of Financial Institutions, and the FDIC, as receiver, created the Deposit Insurance National Bank of Kaysville (DINB), which will remain open until Feb. 12 to allow depositors access to their insured deposits and time to open accounts at other insured institutions.
Under the FDI Act, the FDIC may create a deposit insurance national bank to ensure that depositors have continued access to their insured funds where no other bank has agreed to assume the insured deposits.
As of Sept. 30, 2009, Barnes Banking had $827.8 million in total assets and $786.5 million in total deposits.Â The FDIC, as receiver, will retain all the assets from Barnes Banking for later disposition. The cost to the FDIC's Deposit Insurance Fund (DIF) is estimated to be $271.3 million.
The Minnesota Department of Commerce closed St. Stephen-based St. Stephen State Bank. St. Joseph, Minn.-based First State Bank of St. Joseph has agreed to purchase and assume the failed bank's deposits and essentially all of its assets.
As of Sept. 30, St. Stephen State Bank had approximately $24.7 million in total assets and $23.4 million in total deposits. First State Bank of St. Joseph did not pay the FDIC a premium to assume all of the deposits of St. Stephen State Bank. The FDIC and First State Bank of St. Joseph entered into a loss-share transaction on $20.4 million of St. Stephen State Bank's assets. The FDIC estimates that the cost to the DIF will be $7.2 million.
Town Community Bank and Trust, Antioch, Ill., was closed by the Illinois Department of Financial Professional Regulation, Division of Banking. The FDIC entered into a purchase-and-assumption agreement with First American Bank, Elk Grove Village, Ill., to assume all of the deposits and to purchase approximately $67.6 million of assets from the failed bank.
As of Sept. 30, Town Community Bank and Trust had approximately $69.6 million in total assets and $67.4 million in total deposits. The FDIC retained the remaining assets for later disposition.
The FDIC and First American Bank entered into a loss-share transaction on $56.2 million of Town Community Bank and Trust's assets. The cost to the DIF is estimated to be $17.8 million.