Regulators Close Two BanksNational Bank of Commerce, Bank of Clark County are First Failures of 2009 The first two failed banks of 2009 were a bank in Berkeley, IL and one in Vancouver. WA.
The National Bank of Commerce, Berkeley, IL was closed by the Office of the Comptroller of the Currency on Friday. The Federal Deposit Insurance Corp was appointed receiver. National Bank of Commerce's primary market was the Chicago area, and had $418 million in assets. The OCC closed the bank after finding it was critically undercapitalized and no reasonable prospect of becoming adequately capitalized.
The FDIC says the Republic Bank of Chicago, Oakbrook, IL will assume all of the deposits of the failed bank, and the two locations of National Bank of Commerce were reopened as branches of Republic Bank of Chicago. The cost to FDIC's deposit insurance fund will be $97 million.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $97.1 million. National Bank of Commerce is the first bank to fail in the nation this year.
The second bank closed on Friday was Bank of Clark County, Vancouver, WA. The Washington Department of Financial Institutions named the FDIC receiver. The Bank of Clark County had total assets of $446.5 million. The FDIC says Umpqua Bank, Roseburg, OR will assume the insured deposits of the Bank of Clark County.
The Bank of Clark County will reopen on Tuesday as branches of Umpqua Bank. In addition to assuming the failed bank's insured deposits, Umpqua Bank will buy $30.4 million of assets comprised of cash, cash equivalents, marketable securities and loans secured by deposits. The FDIC estimates the cost to its Deposit Insurance Fund will be between $120 and $145 million.