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FDIC Shuts Two Small Banks In Illinois and Wash. State

Friday, August 5, 2011 - 8:08 PM
From AP via Yahoo! Finance
Regulators on Friday shut down a small bank in Illinois and one in Washington, lifting to 63 the number of U.S. bank failures this year.

The pace of closures has slowed, however, as the economy has stabilized and banks work their way through the bad debt accumulated in the Great Recession. By Aug. 6 last year, regulators had shuttered 109 banks.

The Federal Deposit Insurance Corp. seized Bank of Shorewood, in Shorewood, Ill., with $110.7 million in assets and $104 million in deposits. Bank of Whitman, in Colfax, Wash., with $548.6 million in assets and $515.7 million in deposits, also was shuttered.

Bank of Shorewood had three branches. It is the sixth bank in Illinois to fail this year.

Bank of Whitman had 20 branches, though only eight of them were scheduled to reopen Monday, the FDIC said. It is the third bank in Washington state to fail this year.

Heartland Bank and Trust Co. in Bloomington, Ill., agreed to assume Bank of Shorewood's deposits and essentially all its assets. Columbia State Bank in Tacoma, Wash., agreed to assume Bank of Whitman's deposits and $314.4 million of its assets. The FDIC said it will keep the remaining assets and look to sell them off later.

The failure of the two banks is expected to cost the deposit insurance fund $160.4 million, combined.

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WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
1. Saturday, August 6, 2011 - 5:13 AM
Here's my bank failure summary for these two closures. I also included the bank failures that I missed on July 29th.
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077