WASHINGTON -(Dow Jones)- U.S. regulators took over banks in Minnesota and St.
Louis Friday evening, bringing to 119 the number of U.S. institutions that have
failed in 2009.
The Federal Deposit Insurance Corp. said in a release that Oakdale, Minn.-
based Prosperan Bank and Gateway bank of
St. Louis were both shut down by
regulators. They were the third and fourth banks to fail on Friday, as failures
reached levels not seen since the savings and loan crisis of the early 1990s.
The agency said Prosperan Bank's $175.6 million in total deposts would be
acquired by Alerus Financial of Grand Forks, N.D. Alerus, which paid the FDIC a
premium for the deposits, also agreed to acquire approximately $173.9 million of
Prosperan's assets. The assets are subject to a loss-sharing agreement between
Alerus and the FDIC, the agency said.
The failure is expected to cost the FDIC's deposit insurance fund $60.1
million.
The FDIC reached a similar agreement with Kansas City, Mo.-based Central Bank,
which agreed to acquire essentially all of Gateway Bank's $27.9 million in
deposits and $27.7 million in assets. The cost of Gateway Bank's failure is
expected to cost the FDIC $9.2 million.
Earlier Friday, regulators closed Georgia-based United Security Bank and Home
Federal Savings Bank of Detroit. Those two failures were estimated to cost the
FDIC a combined $63.4 million.
-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273;
michael.crittenden@dowjones.com
(END) Dow Jones Newswires
11-06-091949ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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