Three Banks Closed on Aug. 7

Minnesota's Stearns Bank Acquires Two of Failed Institutions Three additional banks were closed by federal regulators on Friday, Aug., 7, raising the year's running total to 80 - 72 banks and 8 credit unions.

First State Bank of Sarasota, Florida; Community National Bank of Sarasota County, of Venice, Florida; and Community First Bank of Prineville, Oregon, are the latest failures. The first two institutions were both acquired by Stearns Bank, National Association, of St. Cloud, Minnesota.

For a rundown of these newest bank closures:

Community National Bank was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with Stearns Bank to assume all of the deposits.

The four branches of Community National Bank of Sarasota County were to reopen on Saturday as branches of Stearns Bank, N.A.

As of June 30, 2009, Community National Bank of Sarasota County had total assets of $97 million and total deposits of approximately $93 million. Stearns Bank, N.A. will pay the FDIC a premium of 0.25 percent to assume all of the deposits of Community National Bank of Sarasota County. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase $94 million of the failed banks assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Stearns Bank, N.A. entered into a loss-share transaction on approximately $79 million of Community National Bank of Sarasota County's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24 million.

First State Bank was closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Stearns Bank to assume all of the deposits of First State Bank, excluding those from brokers.

The nine branches of First State Bank are to reopen on Monday as branches of Stearns Bank, N.A.

As of May 31, 2009, First State Bank had total assets of $463 million and total deposits of approximately $387 million. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase approximately $451 million of assets. The FDIC will retain the remaining assets for later disposition.

Stearns Bank, N.A. will purchase all deposits, except about $8 million in brokered deposits, held by First State Bank. The FDIC will pay the brokers directly for the amount of their funds.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116 million.

Community First Bank was closed by the Oregon Division of Finance & Corporate Securities, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Home Federal Bank, Nampa, Idaho, to assume all of the deposits of Community First Bank, excluding those from brokers.

The eight branches of Community First Bank are to reopen on Monday as branches of Home Federal Bank.

As of July 5, 2009, Community First Bank had total assets of $209 million and total deposits of approximately $182 million. In addition to assuming all of the deposits of the failed bank, Home Federal Bank agreed to purchase approximately $197 million of assets. The FDIC will retain the remaining assets for later disposition.

Home Federal Bank will purchase all deposits, except about $31 million in brokered deposits, held by Community First Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

The FDIC and Home Federal Bank entered into a loss-share transaction on approximately $155 million of Community First Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45 million.





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