Three Banks Closed on June 25
Latest Tally: 96 Failed Institutions So Far in 2010 Federal and state regulators closed three banks and placed one credit union into conservatorship on Friday, June 25, raising the number of failed institutions to 96 so far in 2010.The latest closings are:
High Desert State Bank
High Desert State Bank, Albuquerque, N.M., was closed by the New Mexico Financial Institutions Division, which appointed the Federal Deposit Insurance Corp. as receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with First American Bank, Artesia, New Mexico, to assume all of the deposits of High Desert State Bank. The two branches of High Desert State Bank will reopen on Monday as branches of First American Bank.
High Desert State Bank had approximately $80.3 million in total assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million.
Arrowhead Central Credit Union
The National Credit Union Administration (NCUA) placed Arrowhead Central Credit Union of San Bernardino, Calif., into conservatorship. By assuming control, NCUA will continue credit union service to the members and ensure safe and sound credit union operations.
Arrowhead Central Credit Union is a full service credit union, with assets of $876 million, that provides financial service to 152,000 members residing in the counties of San Bernardino and Riverside, Calif.
The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members' interests or protect the National Credit Union Share Insurance Fund.
First National Bank
First National Bank, Savannah, Ga., was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Savannah Bank, National Association, Savannah, Ga., to assume all of the deposits of First National Bank. The four branches of First National Bank will reopen on Monday as branches of The Savannah Bank, N.A.
First National Bank had approximately $252.5 million in assets.
The FDIC estimates that the cost to the DIF will be $68.9 million.
Peninsula Bank
Peninsula Bank, Englewood, Fla., was closed by the Florida Division of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Premier American Bank, Miami, Fla., to assume all of the deposits of Peninsula Bank. The 13 branches of Peninsula Bank were to reopen during normal business hours on Saturday as branches of Premier American Bank.
Peninsula Bank had approximately $644.3 million in assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $194.8 million.
