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Two More Bank Failures, National Tally Now at 15

Two banks closed over the weekend, raising the national tally of failed FDIC-insured banks to 15 so far this year.

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State regulators closed Covenant Bank & Trust of Rock Spring, Georgia, the fourth bank to close in Georgia in 2012. ""Stearns Bank"":https://www.stearnsbank.com/ of St. Cloud, Minnesota will assume all deposits of the failed bank.

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The FDIC and Stearns entered into a loss-share transaction on $71.6 million of the closed bank’s assets.

The FDIC estimates that the cost to the insurance fund for the failure will be $31.5 million. The two branches of Covenant Bank & Trust reopened on Monday as branches of Stearns.

Premier Bank of Wilmette, Illinois, the third bank in Illinois to go under, will have ""International Bank of Chicago"":http://www.inbk.com/ assume all of its deposits and purchase all assets.

As of December 31, 2011, Premier held approximately $268.7 million in assets and $199 million in deposits. The estimated cost to the FDIC insurance fund is $64.1 million.

The two branches of Premier reopened Saturday as branches of International Bank of Chicago.

The last FDIC-insured institution closed in the state was New City Bank, Chicago, on March 9, 2012.

Last year, 92 FDIC-insured banks closed, compared to 157 closings in 2010.

About Author: Esther Cho

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