First U.S. Bank Failures of 2009
Austin Kilgore | 01.19.09 www.dsnews.com
The Federal Deposit Insurance Corp. (FDIC) will spend more than $200 million to take over the first two failed banks of 2009.
National Bank of Commerce in Berkeley, Illinois and Bank of Clark County in Vancouver, Washington were both closed by the FDIC Friday.
The FDIC entered into a purchase and assumption agreement with Republic Bank of Chicago in Oak Brook, Illinois, to assume all of the deposits of National Bank of Commerce. National Bank's two locations were reopened as Republic Bank branches on Saturday.
National Commerce Bank had total assets of $430.9 million and total deposits of $402.1 million. The FDIC estimates the cost of the failure to its Deposit Insurance Fund will be $97.1 million.
In a separate action, the FDIC initiated the purchase and assumption agreement of Bank of Clark County to Umpqua Bank of Roseburg, Oregon. Branches of Bank of Clark County will reopen as Umpqua Bank locations Tuesday.
Bank of Clark County had total assets of $446.5 million and total deposits of $366.5 million. At the time of closing, there were approximately $39.3 million in uninsured deposits held in approximately 138 accounts that potentially exceeded the insurance limits, the FDIC said. It is expected the cost of the failure will be between $120 and $145 million.
