U.S. regulators close 4 banks and a credit union
WASHINGTON (Reuters) - U.S. bank regulators on Friday closed four banks and one credit union as the recession took its toll on financial institutions.
"The FDIC has been consistent in our public statements that there will be an increase in activity in bank failures over the course of this year and the announcements tonight reflect that," Federal Deposit Insurance Corp spokesman Andrew Gray said.
Officials have seized 29 banks so far this year. That is up from 25 U.S. banks in all of 2008 and three in 2007.
"There's been little to no disruption for insured depositors," Gray said, declining to estimate how many more bank failures loom.
FDIC and the National Credit Union Administration announced the closings of:
* Eastern Financial Florida Credit Union, headquartered in Miramar, Florida. The National Credit Union Administration was appointed conservator by the Florida Office of Financial Regulations.
The credit union has about $1.6 billion in assets and about 200,000 members. Space Coast Credit Union of Melbourne, Florida, will temporarily manage operations.
* First Bank of Beverly Hills in Calabasas, California. The bank had about $1.5 billion in assets and $1 billion in deposits. FDIC said it had approved the payout of insured deposits. The California Department of Financial Institutions appointed the FDIC as the receiver. The failure is expected to cost the FDIC insurance fund about $394 million.
* First Bank of Idaho in Ketchum. It had about $488.9 million in assets and $374 million in deposits. The failure is expected to cost the FDIC insurance fund about $191.2 million.
FDIC was appointed the receiver. The agency said the U.S. Bank, Minneapolis, Minnesota would assume all of the deposits, excluding $112.8 million in brokered deposits held by First Bank of Idaho, which had seven offices in Idaho and Wyoming.
* Michigan Heritage Bank of Farmington Hills, Michigan. With about $184.6 million in assets and $151.7 million in deposits, FDIC said Level One Bank of Farmington Hills would assume the closed bank's deposits.
The failure is expected to cost the FDIC insurance fund about $71.3 million.
* American Southern Bank of Kennesaw, Georgia. Bank of North Georgia of Alpharetta, Georgia, will assume its deposits. American Southern had about $112.3 million in total assets and total deposits of $104.3 million. The failure is expected to cost the FDIC insurance fund $41.9 million.
The FDIC will insure up to $250,000 per account through 2009 and in individual retirement accounts at insured banks.
The agency has a running 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 Richard Cowan, editing by Leslie Gevirtz)
