Two Banks Closed on Aug. 5

63 Banks and 16 CUs Fail so Far in 2011 Information Security Media Group • August 8, 2011

Two banks were closed by state and federal banking regulators on Friday, Aug. 5. These failures bring the year's tally to 79 failed institutions.

The latest failures:

Bank of Whitman, Colfax, Wash.

Bank of Whitman, Colfax, Wash., was closed by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corp. [FDIC] as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Wash., to assume all of the deposits of Bank of Whitman.

As of June 30, Bank of Whitman had approximately $548.6 million in total assets and $515.7 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund [DIF] will be $134.8 million.

Bank of Shorewood, Shorewood, Ill.

Bank of Shorewood, Shorewood, Ill., was closed by the Illinois Department of Financial and Professional Regulation - Division of Banking, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heartland Bank and Trust Company, Bloomington, Ill., to assume all of the deposits of Bank of Shorewood.

As of June 30, Bank of Shorewood had approximately $110.7 million in total assets and $104.0 million in total deposits.

The FDIC estimates that the cost to the DIF will be $25.6 million.