November 2, 2009
The number of U.S. banks that have failed so far this year surged to 115 last week as the Federal Deposit Insurance Corporation closed nine more banks Friday. The nine banks are located in Arizona, California, Illinois and Texas.
U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, agreed to assume all of the deposits and essentially all of the assets of nine failed banks.
The nine banks involved in today's transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas.
As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.
The nine banks had 153 offices, which will have become branches of U.S. Bank beginning Monday during their normal business hours. Depositors of the nine banks will automatically become depositors of U.S. Bank.
The FDIC and U.S. Bank entered into a loss-share transaction on approximately $14.4 billion of the combined purchased assets of $18.2 billion. U.S. Bank will share in the losses on the asset pools covered under the loss-share agreement.
