Nine Banks Fail on Oct. 30Total 2009 Failures Now at 115 Banks, 19 Credit Unions Nine banks owned by FBOP Corporation were closed by regulators on Friday, Oct. 30, and their assets all acquired by U.S. Bank, NA, of Minneapolis, Minnesota.
This mass closure raises to 134 - 115 banks and 19 credit unions - the number of failed institutions so far in 2009.
The nine banks closed are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas.
As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.
The nine banks had 153 offices, which will reopen as branches of U.S. Bank starting today during their normal business hours. Depositors of the nine banks will automatically become depositors of U.S. Bank.
The Federal Deposit Insurance Corporation (FDIC) and U.S. Bank entered into a loss-share transaction on approximately $14.4 billion of the combined purchased assets of $18.2 billion. U.S. Bank will share in the losses on the asset pools covered under the loss-share agreement.
The nine banks were subsidiaries of FBOP Corporation, Oak Park, Illinois. FBOP Corporation was not closed.
The FDIC estimates that the cost of the nine banks to the DIF will be a combined $2.5 billion.