Premier American Bank, National Association in Miami, a newly chartered institution and subsidiary of Bond Street Holding in Naples, Fla., will assume the failed bank's $326.3 million in deposits and will purchase "essentially all" of Premier American Bank's $350.9 million in assets, according to the FDIC. Premier American Bank, National Association entered into a share-loss agreement with the FDIC on $300 million of failed bank's assets.
The four branches of Premier American will reopen Monday as branches of Premier American Bank, National Association.
Sunflower Bank, National Association in Salina, Kansas will assume Bank of Leeton's $20.4 million in deposits. The FDIC said it will retain most of the failed bank's $20.1 million in assets for later disposition.
The single branch of Bank of Leeton will reopen Saturday as a branch of Sunflower Bank, National Association.
Friday's closures will cost the FDIC approximately$93.1 million.
Customers of the failed banks can access their money over the weekend by writing checks or using ATMs or debit cards. Checks will continue to be processed, and borrowers should make mortgage and loan payments as usual.
The FDIC also said customers should continue to use their existing branch until they receive notice that the takeover has been completed.
A total of 140 banks failed in 2009, the highest since 1992, when 181 banks failed. But that count is far from 1989's record high of 534 closures which took place during the savings and loan crisis.
Last year's spike has raised concerns about the federal deposit insurance fund, which has slipped into the red for the first time since 1991.
The fund was $8.2 billion in the hole as of the end of September. But that includes $21.7 billion the agency has earmarked for future bank failures.
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