Four Banks Fail on Friday - Pinnacle Bank, Corn Belt Bank and Trust, Riverside Bank of the Gulf Coast, Sherman County Bank

Friday the 13th saw four bank failures - Pinnacle Bank, Corn Belt Bank and Trust, Riverside Bank of the Gulf Coast, Sherman County Bank - the most of any Friday so far.

Friday the 13th saw four bank failures - Pinnacle Bank, Corn Belt Bank and Trust, Riverside Bank of the Gulf Coast, Sherman County Bank - the most of any Friday so far.  The FDIC generally closes banks on Fridays to allow it time to deal with depositors and make an orderly transition to a new bank or to put deposit insurance in place by the time the bank reopens on Monday morning.  So far of the thirtnees bank failures this year, every bank failure has fallen on a Friday.  According to the FDIC there were 25 bank failures all of last year. 

In each case, the FDIC has arranged a buyer for  each of the banks who will take over deposits. 

All deposit accounts were transferred for Pinnacle Bank and Sherman Bank.  That means that even if you had deposits in excess of $250,000 they will transferred and available at the new institution.  All non-brokered deposit accounts were transferred for Corn Belt Bank and Trust, and Riverside Bank of the Gulf Coast.  If you deposited your money into a brokered account, the FDIC will cover some of the loss.  You should contact your broker for more information.

In all four cases, each bank will be open for business on Tuesday following the President's Day weekend under its new name.  All checks issues will be cashed by the new bank.  Over the weekend, customers can access funds via check or by the ATM machines.

Below is some specific information about each closing.  For more detail, please visit the FDIC website.

Information for Pinnacle Bank, Beaverton, Oregon

Pinnacle Bank, Beaverton, Oregon, was closed today by the Oregon Division of Finance and Corporate Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Washington Trust Bank, Spokane, Washington, to assume all of the deposits of Pinnacle Bank.

As of December 31, 2008, Pinnacle Bank had total assets of approximately $73 million and total deposits of $64 million. In addition to assuming all of the deposits of the failed bank, including those from brokers, Washington Trust Bank agreed to purchase approximately $72 million in assets at a discount of $7.6 million. The FDIC will retain the remaining assets for later disposition.

The FDIC and Washington Trust Bank entered into a loss-share transaction. Washington Trust Bank will share in the losses on approximately $66 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers as they will maintain a banking relationship.

Corn Belt Bank

Corn Belt Bank and Trust Company, Pittsfield, Illinois, was closed today by the Division of Banking, Illinois Department of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Carlinville National Bank, Carlinville, Illinois, to assume all of the deposits of Corn Belt Bank and Trust Company.

As of December 31, 2008, Corn Belt Bank and Trust Company had total assets of approximately $271.8 million and total deposits of $234.4 million. The Carlinville National Bank will pay the FDIC a premium of 1.75 percent.

The Carlinville National Bank will not assume $92 million in brokered deposits held by Corn Belt Bank and Trust Company. The FDIC will pay the brokers directly for the amount of their insured funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits

Information for Riverside Bank of the Gulf Coast, Cape Coral, FL

Riverside Bank of the Gulf Coast, Cape Coral, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with TIB Bank, Naples, Florida, to assume all of the deposits of Riverside Bank.

As of December 31, 2008, Riverside Bank had total assets of approximately $539 million and total deposits of $424 million. TIB Bank agreed to pay the FDIC a premium of 1.3 percent.

TIB Bank will not assume $142.6 million in brokered deposits held by Riverside Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

Sherman County Bank, Loup City, Nebraska 

Sherman County Bank, Loup City, Nebraska, was closed today by the Nebraska Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Wood River, Nebraska, to assume all of the deposits of Sherman County Bank.

As of February 12, 2009, Sherman County Bank had total assets of approximately $129.8 million and total deposits of $85.1 million. Heritage Bank will pay the FDIC a premium of six percent. In addition to assuming all of the deposits of Sherman County Bank, Heritage Bank agreed to purchase approximately $21.8 million in assets, comprised mainly of cash, cash equivalents and marketable securities. The FDIC will retain the remaining assets for later disposition.

Sherman County Bank, Loup City, Nebraska, was closed today by the Nebraska Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Wood River, Nebraska, to assume all of the deposits of Sherman County Bank.

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