The ninth bank to fail this year was announced by the Federal Deposit Insurance Corp. late Friday: The Columbian Bank and Trust Company, located in Topeka, Kansas. The FDIC said the failed bank had total assets of $752 million and total deposits of $622 million, of which there were approximately $46 million in uninsured deposits. The bank’s insured deposits were purchased by Chillicothe, Missouri-based Citizens Bank and Trust, according to a statement by the FDIC; Columbian’s nine branches will reopen Monday as branches of Citizen. An HW source close to the FDIC, which had suggested the failure to us ahead of the announcement, also noted that the government’s internal estimate of the number of bank failures is closer to 800. That total is roughly equal to the number of failed savings & loans during the S&L crisis of the 1980s and 1990s (more than 1,600 FDIC insured banks failed or received financial assistance between 1980 and 1994, as well). The purchase agreement does not include brokered deposits, totalling approximately $268 million; the FDIC said it will pay insured amounts on the deposits out of its own fund. The cost to the FDIC’s Deposit Insurance Fund is estimated to be $60 million. The Columbian Bank and Trust Company is the first bank to fail in Kansas since Midland Bank of Kansas on Apr. 2, 1993. Related links: Official FDIC statement
Most Popular Articles
The average U.S. rate for a 30-year fixed mortgage fell to 3.33% this week, according to Freddie Mac, as the Federal Reserve’s bond-buying program created demand for securities backed by home loans.
The top 50 most vulnerable housing markets include four in New York, three in Connecticut, 10 from Florida, only two between California and the Southwest.