UPDATE 1-U.S. regulators close Strategic Capital Bank
WASHINGTON, May 22 (Reuters) - Bank regulators closed Strategic Capital Bank, of Champaign, Illinois, on Friday, the 35th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.
The Federal Deposit Insurance Corp said Strategic Capital Bank had $537 million in assets and $471 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $173 million.
Midland States Bank, of Effingham, Illinois, agreed to assume about $536 million of Strategic Capital Bank's assets, whose office will open on Tuesday as a branch of Midland States Bank.
Customers can access their money over the weekend by check, teller machine or debit card, the FDIC said.
In 2008, 25 U.S. banks were seized by officials, up from only three in 2007.
During the current financial crisis, Seattle-based lender Washington Mutual became the biggest bank to fail in U.S. history. It was closed in September while suffering from losses from soured mortgages and liquidity problems.
The FDIC will insure up to $250,000 per account.
The agency also has running a tally of problem banks that its examiners closely monitor. At the end of the fourth quarter, 252 undisclosed institutions were on that list. (Reporting by Karey Wutkowski and Charles Abbott; Editing by Andre Grenon)
