Two Bank Failures At FDIC

The Federal Deposit Insurance Corp. (FDIC) reported two bank closings last week.

In Nebraska, the state's banking department closed Omaha-based Mid City Bank Inc. The FDIC, as receiver, entered into a purchase-and-assumption agreement with Purdum, Neb.-based Purdum State Bank. As of the end of September, Mid City Bank had approximately $106.1 million in total assets and $105.5 million in total deposits.

The Utah Department of Financial Institutions, meanwhile, closed Saint George, Utah-based SunFirst Bank. The FDIC subsequently entered into an agreement with Logan, Utah-based Cache Valley Bank. At the end of the third quarter, SunFirst Bank's assets totaled $198.1 million and its deposits totaled $169.1 million. Cache Valley Bank agreed to purchase $177.3 million of SunFirst Bank's assets, and the FDIC will retain the rest for later disposition.

Additionally, the FDIC noted that it would retain about $15 million in SunFirst Bank's deposits that may be subject to external litigation. The affected accounts were frozen prior to the failure of the bank, the FDIC reports.

Year to date, 87 FDIC-insured institutions have been shuttered.


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