4 Banks Close on Jan. 28

11 Failed Institutions so Far in 2011
4 Banks Close on Jan. 28
First Community Bank, Taos, NM, is the largest of four banks to fail on Friday, Jan. 28.

The $2.31 billion institution was subsequently acquired by U.S. Bank, National Association, Minneapolis, Minnesota. It was the 11th failed bank so far in 2011.

Here is a roundup of all the latest failures:

First Community Bank, Taos, New Mexico

First Community Bank, Taos, New Mexico, was closed by the New Mexico Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank, National Association, Minneapolis, Minnesota, to assume all of the deposits of First Community Bank.

The 38 branches of First Community Bank were to reopen during their normal business hours beginning Saturday as branches of U.S. Bank, National Association. Depositors of First Community Bank will automatically become depositors of U.S. Bank, National Association.

As of September 30, 2010, First Community Bank had approximately $2.31 billion in total assets and $1.94 billion in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank, National Association agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $260.0 million.

FirsTier Bank, Louisville, Colorado

FirsTier Bank, Louisville, Colorado, was closed by the Colorado Division of Banking, which appointed FDIC as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of Louisville (DINB), which will remain open until February 28, 2011, to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the receiver immediately transferred to the DINB all insured deposits of FirsTier Bank, except for brokered deposits, certificates of deposit (CDs) and individual retirement accounts (IRAs). The receiver also transferred to the DINB all secured deposits of public entities.

The main office and all branches of FirsTier Bank were to re-open on Saturday, January 29, 2011, and will provide limited services. The DINB will maintain limited business hours. Banking activities, such as writing checks, ATM and debit card withdrawals, can continue normally for former customers of FirsTier Bank until February 11, 2011. Official checks of FirsTier Bank will continue to clear and will be issued to customers who will be closing their accounts. All government direct deposits, including Social Security checks, will be redirected to FirstBank, Lakewood, Colorado, for 30 days after February 22, 2011, which will process them at the same time as in the past.

As of September 30, 2010, FirsTier Bank had $781.5 million in total assets and $722.8 million in total deposits. At the time of closing, the amount of deposits exceeding the insurance limits was undetermined.

The FDIC estimates that the cost to the DIF will be $242.6 million.

Evergreen State Bank, Stoughton, Wisconsin

Evergreen State Bank, Stoughton, Wisconsin, was closed by the Wisconsin Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with McFarland State Bank, McFarland, Wisconsin, to assume all of the deposits of Evergreen State Bank.

The four branches of Evergreen State Bank were to reopen on Saturday as branches of McFarland State Bank. Depositors of Evergreen State Bank will automatically become depositors of McFarland State Bank.

As of September 30, 2010, Evergreen State Bank had approximately $246.5 million in total assets and $195.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, McFarland State Bank agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the DIF will be $22.8 million.

The First State Bank, Camargo, Oklahoma

The First State Bank, Camargo, Oklahoma, was closed by the Oklahoma State Banking Department, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank 7, Oklahoma City, Okla., to assume all of the deposits of The First State Bank.

The sole branch of The First State Bank will reopen on Monday as a branch of Bank 7. Depositors of The First State Bank will automatically become depositors of Bank 7.

As of Sept. 30, The First State Bank had approximately $43.5 million in total assets and $40.3 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $20.1 million.


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