Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Regulators shutter 2 more banks

The FDIC said the failures of Heritage Community Bank and Security Savings Bank will cost the Deposit Insurance Fund a combined $100.7 million.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Catherine Clifford, CNNMoney.com staff writer

Map
Where the banks are failing
Bank failures and foreclosures keep mounting

NEW YORK (CNNMoney.com) -- State bank regulators closed two more banks on Friday, the 15th and 16th banks to fail this year, as the worsening recession pulled more regional banks underwater.

The announcement marks the seventh consecutive week of bank failures being announced on a Friday evening.

The Federal Deposit Insurance Corp. said that Security Savings Bank of Henderson, Nevada, had $238.3 million in assets and $175.2 million in deposits as of December 31, 2008. Heritage Community Bank of Glenwood, Illinois, had assets totaling $232.9 and deposits totaling $218.6 million as of December 5, 2008.

Combined, the two bank failures will cost the Deposit Insurance Fund approximately $100.7 million.

Bank of Nevada agreed to assume all of Security Savings Bank's deposits, and purchase approximately $111.3 million of the failed bank's assets. The FDIC will retain the remaining assets, and estimates that the cost to its fund will be $59.1 million.

Heritage was purchased by MB Financial Bank, N.A., of Chicago, Illinois, which agreed to acquire all of the failed bank's deposits and $230.5 million of the failed bank's assets, said the FDIC, which estimated the cost to its fund at $41.6 million.

Customers will be able to access their deposits with debit cards and checks over the weekend. Those who owe loan payments should continue making those payments.

The FDIC fully insures individual accounts up to $250,000 through the end of 2009.

In all of 2008, 25 banks failed and the FDIC's list of troubled banks grew to 252 during the fourth quarter, marking the highest level since 1994.

Bank failures could cost the FDIC fund $65 billion by 2013, the agency said Friday at its board meeting.

In order to prevent larger banks from failing, the government has injected billions of dollars into those institutions.

On Friday, the government said it had taken control of 36% of Citigroup, which had already received $45 billion from the government. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Top luxury hotel suites for business travelers For many people, you can't put a price on comfort. More
Million-dollar startups: These firms scored big sales their first year Their first year in business, these companies generated $1 million in sales. More
The 10 best states for retirees It might be worth moving to a new place to find your dream retirement home. Check out these 10 states. More
Sponsors