Closures in Nebraska, Florida, Illinois and Oregon bring the number of bank failures to 13 this year as the financial crisis continues to roll.
Pastor Dale Morgan
*Closures in Nebraska, Florida, Illinois and Oregon bring the number of
bank failures to 13 this year as the financial crisis continues to roll.*
NEW YORK (CNNMoney.com) -- Four banks folded Friday, bringing the total
number of banks to fail this year to 13.
Deposits at Sherman County Bank, based in Loup City, Neb., the first
bank in the state to fail since 1990, will be taken over by Heritage
Bank, based in Wood River, Neb., according to the Federal Deposit
Insurance Corporation.
Meanwhile, accounts held by Riverside Bank of the Gulf Coast based in
Cape Coral, Fla., will be assumed by TIB Bank based in Naples, Fla., the
FDIC said. It is the second bank to fail in Florida this year and the
fourth to go under in that state since the economic crisis unfurled.
Corn Belt Bank and Trust Company, based in Pittsfield, Ill., the third
bank to fail in the state since January 2008, was also shuttered by
state regulators, and its deposits were turned over to The Carlinville
National Bank out of Carlinville, Ill.
Pinnacle Bank, Beaverton, Oregon, was closed by the Oregon Division of
Finance and Corporate Securities. The FDIC entered into an agreement
with Washington Trust Bank, Spokane, Washington, to assume all of the
deposits of Pinnacle Bank.
Customers who banked with Sherman County Bank, Riverside, Corn Belt
Bank, or Pinnacle Bank will automatically become customers of the new
owners, and will retain their account protection under the FDIC, which
insures single accounts up to $250,000, and joint accounts up to
$500,000, the government agency said.
Due to the Presidents Day holiday on Monday, Sherman County Bank's four
branches, Riverside's nine branches, and Corn Belt Bank's two, will
reopen on Tuesday as branches of the new deposit holders, the agency said.
Over the three-day weekend, those customers will be able to use checks,
ATMs and debit cards as normal. Customers who have taken out loans from
a failed bank should continue to make regular payments, the FDIC said.
Sherman County Bank held assets worth about $129.8 million, and held
deposits worth about $85.1 million, as of Feb. 12, the FDIC said.
Heritage Bank has agreed to purchase about $21.8 million of Sherman
County Bank's assets.
Riverside Bank held assets worth about $539 million, and held deposits
worth about $424 million, as of December last year, the FDIC said. TIB
Bank will not assume $142.6 million worth of brokered deposits held by
Riverside Bank, but agreed to buy $125 million of Riverside's assets.
Corn Belt Bank carried assets worth about $271.8 million, with deposits
of $234.4 million, according to the agency. Carlinville National will
not take on $92 million of Corn Belt's brokered deposits, but would buy
$60.7 million of Corn Belt's assets, the FDIC said.
Pinnacle Bank had total assets of approximately $73 million and total
deposits of $64 million. In addition to assuming all of the deposits of
the failed bank, including those from brokers, Washington Trust Bank
agreed to purchase approximately $72 million in assets at a discount of
$7.6 million, the FDIC announced late Friday.
Altogether, the bank failures announced Friday will cost the FDIC about
$341.6 million.
The unfolding financial crisis continues to take a toll on banks. If
banks continue to fail at a rate of at least one per week, on average,
then 2009 could see twice as many failures as in 2008. Last year, 25
banks were closed nationwide, which was the highest annual total since
1993, when 42 banks went under.
Economists expect the number of failed banks to continue rising this
year, as the financial crisis plays out and the economic outlook remains
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