U.S. Bancorp acquires Downey, PFF deposits

WASHINGTON, Nov 21 (Reuters) - US Bancorp (USB.N) agreed to acquire the deposits of Downey Savings and Loan Association and PFF Bank & Trust, the latest in a growing list of banks to fail this year, U.S. banking regulators said on Friday.

As part of the transaction, U.S. Bank agreed to implement a loan modification program similar to the one the Federal Deposit Insurance Corp is using for mortgages held by IndyMac, the FDIC said.

U.S. Bank entered into a loss share agreement that requires assuming the first $1.6 billion of losses on the asset pools.

Downey, a thrift owned by Downey Financial Corp DSL.N, had $12.8 billion in assets and $9.7 billion in deposits, and PFF had $3.7 billion in assets and $2.4 billion in deposits as of Sept. 30, the FDIC said. (Reporting by John Poirier; Editing by Gary Hill)