Five Banking Institutions Closed by Feds

Four Banks, One Credit Union Latest to Fail
Five Banking Institutions Closed by Feds
Five financial institutions - four banks and one credit union - closed on Friday the 13th, an indication of continuing focus on the stability of the financial services industry.

The four banks were in Illinois, Nebraska, Florida and Oregon. The credit union was located in West Virginia. So far, 13 banks and two credit unions have failed in 2009.

The National Credit Union Administration (NCUA) closed the Center Valley Federal Credit Union, $8 million in assets and 3,150 members. The members of the Wheeling, WV credit union will be issued checks by the NCUA Asset Management and Assistance Center. The NCUA made the decision to liquidate Center Valley Federal Credit Union's assets and discontinue its independent operation after determining that the credit union is insolvent and has no prospects for restoring viable operations. It is the second federally insured credit to close this year.

The Sherman County Bank, Loup City, NE was closed by the Nebraska Department of Banking and Finance, and the FDIC was appointed receiver. The Heritage Bank, Wood River, NE will buy all the deposits of Sherman County Bank. The failed bank's four branches will reopen under Heritage Bank on Tuesday. The failed bank had assets of $129.8 million and deposits of $85.1 million. Heritage will buy $21.8 million in assets from Sherman.

The Riverside Bank of the Gulf Coast, Cape Coral, FL was closed by the Florida Office of Financial Regulation. The FDIC brokered a purchase of the failed bank's deposits by TIB Bank, Naples, FL. The failed bank's nine offices will reopen on Tuesday as branches of TIB Bank. The failed bank had assets of $539 million and deposits of $424 million. Along with buying deposits, TIB will buy $125 million in assets from the failed bank. The cost of the FDIC Deposit Insurance Fund will Be $201.5 million.

Corn Belt Bank and Trust Company, Pittsfield, IL was closed by the Division of Banking, Illinois Department of Financial Regulation. The FDIC brokered a purchase of the failed bank's deposits by the Carlinville National Bank, Carlinville, IL. The two offices of the failed bank will reopen on Tuesday as branches of The Carlinville National Bank. The Corn Belt Bank and Trust Company had total assets of $271.8 million and deposits of $234.4 million. The Carlinville National Bank will also buy $60.7 million in assets. The cost to the FDIC Deposit Insurance Fund will be about $100 million.

Finally, Pinnacle Bank, Beaverton, OR was closed by the Oregon Division of Finance and Corporate Securities. The FDIC arranged for the failed bank's deposits to be bought by Washington Trust Bank, Spokane, WA. The failed bank's only office will reopen on Tuesday as a branch of Washington Trust Bank. Pinnacle Bank had assets of $73 million and deposits of $64 million. Washington Trust Bank also will buy $72 million in assets at a discount of $7.6 million. The FDIC and Washington Trust Bank entered into a loss-share transaction where Washington Trust Bank will share in the losses on $66 million in assets. The cost to the FDIC Deposit Insurance Fund will be $12.1 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.




Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing bankinfosecurity.asia, you agree to our use of cookies.