The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks. The nine banks were closed this evening by federal and state bank regulators, which appointed the FDIC as receiver.
The nine banks involved in today’s transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas. As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.
The nine banks had 153 offices, which will reopen as branches of U.S. Bank beginning tomorrow during their normal business hours. Depositors of the nine banks will automatically become depositors of U.S. Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until U.S. Bank can fully integrate the deposit records of the nine failed banks.
The nine banks were subsidiaries of FBOP Corporation, Oak Park, Illinois. FBOP Corporation was not closed and was not subject to today’s actions.
The FDIC estimates that the cost of the nine banks to the DIF will be a combined $2.5 billion. U.S. Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. The failure of the nine banks brings the nation’s total number this year to 115.
Check all the banks failed in Arizona at : Arizona Bank Failures
Check all the banks failed in California at : California Bank Failures
Check all the banks failed in Illinois at : Illinois Bank Failures
Check all the banks failed in Texas at : Texas Bank Failures
9 Bank Failures - October 30, 2009
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Map of Bank Failures
The FDIC press release is available here.
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