NEW YORK (CNNMoney.com) -- Two small banks in Florida and Missouri failed Friday night, making them the fifth and sixth banks to close in 2010.
Regulators shuttered Premier American Bank in Miami and Bank of Leeton in Leeton, Mo.
Customers of both banks are protected, however. The Federal Deposit Insurance Corporation, which has insured bank deposits since the Great Depression, currently covers accounts up to $250,000.
Premier American Bank, National Association in Miami, a newly chartered institution and subsidiary of Bond Street Holding in Naples, Fla., will assume the failed bank's $326.3 million in deposits and will purchase "essentially all" of Premier American Bank's $350.9 million in assets, according to the FDIC. Premier American Bank, National Association entered into a share-loss agreement with the FDIC on $300 million of failed bank's assets.
The four branches of Premier American will reopen Monday as branches of Premier American Bank, National Association.
Sunflower Bank, National Association in Salina, Kansas will assume Bank of Leeton's $20.4 million in deposits. The FDIC said it will retain most of the failed bank's $20.1 million in assets for later disposition.
The single branch of Bank of Leeton will reopen Saturday as a branch of Sunflower Bank, National Association.
Friday's closures will cost the FDIC approximately $93.1 million.
Customers of the failed banks can access their money over the weekend by writing checks or using ATMs or debit cards. Checks will continue to be processed, and borrowers should make mortgage and loan payments as usual.
The FDIC also said customers should continue to use their existing branch until they receive notice that the takeover has been completed.
A total of 140 banks failed in 2009, the highest since 1992, when 181 banks failed. But that count is far from 1989's record high of 534 closures which took place during the savings and loan crisis.
Last year's spike has raised concerns about the federal deposit insurance fund, which has slipped into the red for the first time since 1991.
The fund was $8.2 billion in the hole as of the end of September. But that includes $21.7 billion the agency has earmarked for future bank failures.
Index | Last | Change | % Change |
---|---|---|---|
Dow | 32,627.97 | -234.33 | -0.71% |
Nasdaq | 13,215.24 | 99.07 | 0.76% |
S&P 500 | 3,913.10 | -2.36 | -0.06% |
Treasuries | 1.73 | 0.00 | 0.12% |
Company | Price | Change | % Change |
---|---|---|---|
Ford Motor Co | 8.29 | 0.05 | 0.61% |
Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
General Electric Co | 13.00 | -0.16 | -1.22% |
Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More |
Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More |
Honda and General Motors are creating a new generation of fully autonomous vehicles. More |
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More |
Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. More |