Regulators today shut down two small banks,National Bank of Commerce in Illinois and Bank of Clark County in Washington state.
The Federal Deposit Insurance Corp was appointed receiver of the banks. They were the first two federally insured banks to fail and be shuttered by regulators this year amid the pressures of tumbling home prices,rising mortgage foreclosures and tighter credit.
National Bank of Commerce,in Berkeley,Illinois,had $430.9 million in assets and $402.1 million in deposits as of January 7. Bank of Clark County,in Vancouver,Washington,had $446.5 million in assets and $366.5 million in deposits as of January 13.
The FDIC said all of National Banks deposits will be assumed by Republic Bank of Chicago,based in Oak Brook,Illinois. Its two branches will reopen Saturday as offices of Republic Bank. That bank also will buy about $366.6 million of National Bank of Commerce’s assets; the FDIC will retain the rest for eventual sale.
Umpqua Bank,based in Roseburg,Oregon,will assume the insured deposits only of Bank of Clark County. As of January 16,there were about $39.3 million in uninsured deposits that potentially exceeded the insurance limits,according to the FDIC.
Regular deposit accounts are now insured up to $250,000 as part of the financial rescue law enacted in October.
Bank of Clark Countys branches will reopen Tuesday as offices of Umpqua Bank,which also will buy $30.4 million of Bank of Clark Countys assets.