Five More Bank Failures Cost FDIC $401.3m

Regulators shut down five more banks late Friday, bringing the running 2009 total to 89. The latest round of weekly failures puts $1.1bn of assets on the line for sale or disposition, and will cost the federal deposit insurance fund an estimated $401.3m. The Office of Thrift Supervision (OTS) shut down Vantus Bank, naming the Federal Deposit Insurance Corp. (FDIC) as receiver. The FDIC entered a purchase and assumption agreement with Great Southern Bank, which assumes all $368m of Vantus’ deposits and approximately $387m of Vantus’ $458m of assets. The FDIC retains the remaining assets for later disposition, and will share with Great Southern in the losses on the asset pool. The failure will cost the deposit insurance fund an estimated $168m. The OTS also shut down Platinum Community Bank. The FDIC approved the payout of insured deposits and entered an agreement with MB Financial Bank to accept the failed bank’s direct deposits from the federal government, including Social Security and Veterans’ payments. As of August 29, Platinum Community Bank had $345.6m of total assets and $305m of total deposits. The failure will cost the insurance fund an estimated $114.3m. The Illinois Department of Financial and Professional Regulation, Division of Banking, shut down InBank. The FDIC entered a purchase agreement with MB Financial Bank, which assumes all but the brokered deposits of InBank’s $199m of deposits. MB Financial Bank also agreed to purchase “essentially all” of InBank’s $212m of assets. The failure will cost the FDIC’s insurance fund an estimated $66m. The Arizona Department of Financial Institutions shut down First State Bank. The FDIC entered a purchase agreement with Sunwest Bank to assume al $95m of deposits and “essentially all” $105m of assets from the failed bank. The failure will cost the FDIC’s insurance fund an estimated $47m. The Missouri Division of Finance shut down First Bank of Kansas City. The FDIC entered a purchase agreement with Great American Bank to assume all $15m of First Bank’s deposits. Great American also agreed to purchase all $16m of assets. The bank’s failure will cost an estimated $6m to the FDIC’s deposit insurance fund. Write to Diana Golobay.