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After a two-week lull in which no banking institution was shuttered by regulators, the FDIC stepped in this weekend to seize Western Springs National Bank and Trust in Illinois and Nevada Commerce Bank headquartered in Las Vegas.
The two closings bring the total number on the FDIC's failed bank list for the 2011 calendar year to 28. Bank failures have slowed recently. During the first quarter of this year, 27 insured banks went under â€" the lowest[IMAGE] [COLUMN_BREAK]
quarterly tally since the second quarter of 2009 when bad real estate loans were forcing near-record numbers to close their doors weekly.
""Western Springs National"":https://www.westernspringsbank.com/ operated two branch offices, with $181.9 million in total deposits and $186.8 million in assets. ""Heartland Bank and Trust Company"":http://www.hbtbank.com in Bloomington, Illinois, will take over the failed' banks deposits and has agreed to purchase all assets.
The FDIC and Heartland Bank and Trust entered into a loss-share transaction on $100.8 million of Western Springs' commercial loans. The Illinois bank's closing will cost the FDIC an estimated $31 million.
""Nevada Commerce Bank"":http://www.nevadacommercebank.com/nevadacommerce_transfer.html was shut down by its state regulator, and the FDIC appointed receiver. The institution had two branch locations, deposits worth $136.4 million and assets of $144.9 million.
The FDIC brokered a deal with ""City National Bank"":http://www.cnb.com/, based in Los Angeles, to purchase the failed Nevada bank's deposits and assets. The federal agency agreed to share in the losses on $111.1 million of Nevada Commerce Bank's assets. The closing is expected to cost the FDIC $31.9 million.
