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Two banks fail in Nevada and Illinois; the FDIC has stepped in to protect depositors

Post by C.R. Roberts / The News Tribune on Feb. 27, 2009 at 5:13 pm |
February 27, 2009 5:13 pm

In what has become a predictable event come Friday, regulators closed a pair of banks today – one each in Nevada and Illinois.


The Federal Deposit Insurance Corp. announced this afternoon that Security Savings Bank of Henderson, Nev. and Heritage Community Bank, of Glenwood, Ill. were shuttered by local regulators and the federal agency.


In Nevada, the FDIC has entered into a purchase and assumption agreement with Bank of Nevada in Las Vegas to assume all deposits of Security Savings.


The two offices of Security Savings Bank will reopen on Monday as branches of Bank of Nevada, the FDIC said. As of December 31, Security Savings had total assets of approximately $238.3 million and total deposits of $175.2 million. Bank of Nevada did not pay a premium to acquire the deposits.


The FDIC has been appointed receiver at Heritage Community in Illinois. The agency entered into a purchase and assumption agreement with MB Financial Bank, N.A., of Chicago to assume Heritage Community’s deposits. The four offices of Heritage will reopen as branches of MB Financial Bank on Saturday.


As of December 5, Heritage had total assets of $232.9 million and total deposits of $218.6 million. In addition to assuming all of the deposits of the failed bank, including those from brokers, MB Financial Bank agreed to purchase approximately $230.5 million in assets at a discount of $14.5 million. The FDIC will retain the remaining assets for later disposition, according to the announcement.

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