the most important story for Friday, the 13th, appearing at Market Watch
FDIC shutters four banks in one day
Oregon, Nebraska, Florida, Illinois bank failures bring year's total to 13
SAN FRANCISCO (MarketWatch) -- Loup City, Neb.-based Sherman County Bank, Cape Coral, Fla.-based Riverside Bank of the Gulf Coast, Pittsfield, Ill.-based Corn Belt Bank and Trust Company, and Beaverton, Ore.-based Pinnacle Bank were closed by regulators Friday, bringing the number of U.S. bank failures for 2009 to 13 and 38 total since the start of the credit crisis, the Federal Deposit Insurance Corp. said.
Nebraska has not seen a bank failure since 1990, according to the FDIC. However, Riverside Bank follows Fla.-based Ocala National Bank, which failed on Jan. 30. Prior to Corn Belt Bank, the last Illinois bank to fail was National Bank of Commerce on Jan. 16.
Nebraska's Sherman County Bank had roughly $129.8 million in assets as of Feb. 12 and $85.1 million in deposits, the FDIC said.
Wood River, Neb.-based Heritage Bank has agreed to assume all of the failed bank's deposits, and will purchase roughly $21.8 million worth of its assets, the FDIC said.
The FDIC estimated the cost of the failure to its deposit-insurance fund will be $28 million.
Sherman County Bank's four offices will reopen Tuesday as branches of Heritage Bank, the FDIC said.
Florida's Riverside Bank had roughly $539 million in assets as of Dec. 31 and $424 million in total deposits, the FDIC said.
Naples, Fla.-based TIB Bank has agreed to assume the failed bank's deposits, though it will not assume $142.6 million in brokered deposits held by the bank, according to the agency.
TIB Bank will purchase roughly $125 million in the failed bank's assets, the FDIC added.
The FDIC estimated the cost to its deposit insurance fund as a result of the failure of Riverside Bank will be $201.5 million.
Illinois-based Corn Belt Bank had roughly $271.8 million in assets as of Dec. 31 and $234.4 million in deposits, the FDIC said.
Carlinville, Ill.-based Carlinville National Bank will assume Corn Belt Bank's deposits and will buy roughly $60.7 million worth of its assets, the FDIC said, though it will not assume $92 million in brokered deposits held by the bank.
Corn Belt Bank's two offices will reopen Tuesday as branches of the Carlinville National Bank.
The FDIC estimated the cost of Corn Belt Bank's failure to its deposit-insurance fund will be $100 million.
Washington Trust Bank of Spokane, Wash. will assume all of the deposits of Pinnacle Bank. As of Dec. 31, Pinnacle Bank had total assets of approximately $73 million and total deposits of $64 million. In addition to assuming all of the deposits of the failed bank, including those from brokers, Washington Trust Bank agreed to purchase approximately $72 million in assets at a discount of $7.6 million. The FDIC will retain the remaining assets for later disposition.
The FDIC and Washington Trust Bank entered into a loss-share transaction. Washington Trust Bank will share in the losses on approximately $66 million in assets covered under the agreement. The FDIC estimates that the cost to the Deposit Insurance Fund will be $12.1 million.
John Letzing is a MarketWatch reporter based in San Francisco.