Regulators close banks in Neb., Fla., Ill.
WASHINGTON -- Regulators on Friday closed Sherman County Bank in Nebraska, Riverside Bank of the Gulf Coast in Florida, and Corn Belt Bank and Trust Co. in Illinois, marking 12 failures this year of federally insured institutions.
The Federal Deposit Insurance Corp. was appointed receiver of the banks. Sherman County Bank, located in Loup City, Neb., had $129.8 million in assets and $85.1 million in deposits as of Feb. 12. Cape Coral, Fla.-based Riverside Bank had assets of $539 million and deposits of $424 million as of Dec. 31. Corn Belt Bank and Trust Co. of Pittsfield, Ill., had total assets of $271.8 million and deposits of $234.4 million as of Dec. 31.
Twenty-five U.S. banks failed last year, far more than in the previous five years combined. There were only three bank failures in 2007. It's expected that many more banks won't survive this year amid rising unemployment, falling home prices and tighter credit.
The FDIC said Sherman County Bank's deposits will be assumed by Heritage Bank, based in Wood River, Neb. Due to the Presidents Day holiday on Monday, Sherman County's four branches, including those that operated under the name Howard County Bank, will reopen on Tuesday as branches of Heritage Bank. The bank agreed to buy $21.8 million of Sherman County Bank's assets. The FDIC will retain the remaining assets for later disposition.
TIB Bank of Naples, Fla., will assume all of the deposits of Riverside Bank, except for $142.6 million in brokered deposits. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their accounts, the FDIC said.
TIB Bank agreed to buy $125 million of Riverside's assets. The FDIC will retain the remaining assets for later disposition. Riverside's 13 branches will reopen Tuesday as TIB Bank branches.
The Carlinville National Bank of Carlinville, Ill., will assume all of the deposits of Corn Belt Bank and Trust, whose two branches will reopen on Tuesday as Carlinville National Bank branches. Carlinville Bank and Trust will not assume $92 million in Corn Belt brokered deposits. The FDIC will pay the brokers directly for the amount of the insured funds.
