Regulators Close Five More Banks

Regulators wrapped up July with five more bank closings, bringing the total for the first seven months of the year to 69.

The biggest casualty was Mutual Bank, of Harvey, Ill., which had $1.6 billion in assets. The Federal Deposit Insurance Corp. arranged for United Central Bank, of Garland, Texas, to assume all of its $1.6 billion in deposits, its 12 branches and virtually all of its assets.

The FDIC and United Central entered into a loss-sharing arrangement on $1.3 billion of the failed bank's assets.

A total of 24 four banks were declared insolvent in July, one fewer than the total for all of 2008.

The Office of Thrift Supervision on Friday shut down Peoples Bank, of West Chester, Ohio, which had $705.8 million in assets. First Financial Bank N.A., of Hamilton, Ohio, agreed to take over Peoples Bank's deposits, its 19 branches and most of its assets.

First Financial Bank paid a 1.5 percent premium to acquire the failed bank's $598.2 million in deposits. It agreed to a loss-sharing deal with the FDIC on $657.6 million of Peoples Bank's assets.

The other three closed banks each had between $100 million and $170 million in assets.

New Jersey regulators shut down First BankAmericano, in Elizabeth, N.J., on Friday and appointed the FDIC as receiver. It arranged for Crown Bank, of Brick, N.J., to assume all of the failed bank's $157 in deposits and nearly all of its $166 million in assets.

Florida regulators closed Intregrity Bank, a one-branch institution in Jupiter, Fla., which had $102 million in deposits and $119 million in assets. Stonegate Bank, of Fort Lauderdale, paid a premium of 0.2 percent to acquire all of the failed bank's deposits. It also bought $52 million of its assets.

Oklahoma regulators shut down First State Bank, of Altus, Okla., and the FDIC arranged for its $98.2 in deposits, along with its branches, to be acquired by Herring Bank, of Amarillo, Texas.  Herring Bank also agreed to buy $64.4 million of the failed bank's $103.4 million in assets.

The FDIC estimated that the five bank closings would cost its insurance fund around $911.7 million.