Regulators Shut Down Lenders in Iowa and Louisiana

This year's ""tally of failed banks"":http://www.fdic.gov/bank/individual/failed/banklist.html rose to 90 over the weekend, as state and federal regulators stepped in to close the doors on two more community-based lenders in Iowa and Louisiana.

The three branch locations of ""Polk County Bank"":http://www.polkcountybank.com/ in Johnston, Iowa, were seized by regulators. The bank had $82.0 million in deposits and $91.6 million in total assets.

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Polk County Bank has now become part of Iowa's ""Grinnell State Bank"":http://www.grinnellbank.com, which agreed to pick all of the failed institution's deposits and purchase all of its assets in an FDIC-assisted transaction.

The FDIC estimates the Iowa bank's closing will cost its insurance fund $12.0 million. Polk County Bank is the first lender in the state to be shut down this year. The last regulatory seizure of an Iowa-based institution was in September 2009.

""Central Progressive Bank"":http://www.cpb.com/, headquartered in Lacombe, Louisiana, has also been closed. It operated 17 branch offices, with $347.7 million in deposits and assets totaling $383.1 million.

The FDIC brokered a deal with ""First NBC Bank"":http://www.firstnbcbank.com out of New Orleans to take over the failed lender's operations and assume all deposits. First NBC also agreed to purchase approximately $354.4 million of Central Progressive Bank's assets. The FDIC will retain the remaining assets for later disposition.

The Louisiana bank's closing is expected to cost the FDIC $58.1 million. It's the first insured lender to go under in the state since March of last year.