Three Banks Closed on June 4

89 Failed Institutions so Far in 2010 Federal and state banking regulators closed three banks on Friday, June 4, raising the number of failed institutions to 89 so far in 2010.

The latest closings are:

First National Bank, Rosedale, Miss.
First National Bank, Rosedale, Miss., was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corp. as receiver. The FDIC entered into a purchase and assumption agreement with The Jefferson Bank, Fayette, Miss., to assume all deposits of First National Bank.

The sole branch of First National Bank will reopen on Monday as a branch of The Jefferson Bank.

First National Bank had approximately $60.4 million in total assets. The Jefferson Bank did not pay the FDIC a premium for the deposits of First National Bank but agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $12.6 million.

Arcola Homestead Savings Bank, Arcola, Ill.
The FDIC approved the payout of the insured deposits of Arcola Homestead Savings Bank, Arcola, Ill. The bank was closed by the Illinois Department of Financial Professional Regulation - Division of Banking, which appointed the FDIC as receiver. No other financial institution was found to take over Arcola Homestead Savings Bank's operations.

Checks to the retail depositors for insured funds will be mailed on Monday. Brokered deposits will be wired, once brokers provide the FDIC with the necessary documents. On Monday, the FDIC will mail checks to customers for insured funds in savings accounts, IRAs, Money Markets and certificates of deposit. The FDIC has made arrangements for the insured funds in checking and NOW accounts to be transferred to the Arcola branch of First Mid-Illinois Bank & Trust, National Association.

Arcola Homestead Savings Bank had approximately $17.0 million in total assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.2 million.

Great TierOne Bank, Lincoln, Neb.
TierOne Bank, Lincoln, Neb., was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Great Western Bank, Sioux Falls, S.D., to assume all of the deposits of TierOne Bank.

The 69 branches of TierOne Bank were to reopen Saturday as branches of Great Western Bank.

TierOne Bank had approximately $2.8 billion in total assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $297.8 million.


About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.




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