Like clockwork, Federal regulators took over five banks spanning across Arizona, Illinois, Iowa and Missouri today, bringing the total number of bank failures to 89 amid the worst financial crisis since the Great Depression.
The two banks that were shut down in Illinois today were InBank of Oak Forest, IL and Platinum Community Bank of Rolling Meadows, IL. In Iowa, Vantus Bank of Sioux City was shut down. In Missouri, First Bank of Kansas City was shut down. In Arizona, First State Bank of Flagstaff was shut down. The Federal Deposit Insurance Company (FDIC) was named as the receiver of all five banks today.
In total, the lenders had a combined $1.1 billion in assets and deposits of just $872 million. The estimated cost to the FDIC’s deposit insurance fund will be approximately $401 million.
MB Financial Bank of Chicago will take over the assets of Platinum Community Bank, with the FDIC approving a payout on insured deposits. Platinum had a total of $305 million in deposits and assets totaling $345.6 million. MB Bank also purchased $150 million of InBank’s deposits and $212 worth of InBank’s assets. MB Financial elected not to purchase about $50 million worth of InBank’s brokered deposits. InBank’s 3 branches will open tomorrow as offices of MB Financial.
First State Bank’s $95 million in assets and $105 million in deposits were acquired by Sunwest Bank of Tustin, CA, according to the FDIC. The First State Bank branches will open as Sunwest branches on September 8th. Great American Bank bought First Bank of Kansas City’s $15 million in deposits and $16 million in assets. The only branch of First Bank of KC will open tomorrow as an office of Great American Bank
