Seven institutions insured by the Federal Deposit Insurance Corp. (FDIC) were closed Friday, bringing the number of FDIC-insured bank failures this year to 106.
First DuPage Bank in Westmont, Ill.; Riverview Community Bank in Otsego, Minn.; Bank of Elmwood in Racine, Wis.; American United Bank in Lawrenceville, Ga.; Flagship National Bank in Bradenton, Fla.; and Hillcrest Bank Florida and Partners Bank – both in Naples, Fla. – were shuttered.
In a video message on the FDIC's home page, Chair Sheila Bair ensured consumers that their deposits are safe and said the "overwhelming majority" of the nation's 8,200 banks will weather current economic conditions.
"Until the healing process is complete, there will be more bank failures," Bair said. "However, the number of failures we are experiencing is significantly lower than those the FDIC has handled in the past."
More than 500 FDIC-insured banks failed in 1989 during the height of the savings and loan crisis, Bair noted in her message.
The FDIC estimates that its Deposit Insurance Fund will take about a $356.7 million hit as a result of the seven bank closings.