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Banks Seized by Regulators in Nebraska, Mississippi, Illinois

Dan Reichl
Bloomberg [1]
June 6, 2010

Three banks with total deposits of almost $2.3 billion were seized by regulators amid losses stemming from soured real-estate loans, raising to 81 the number of U.S. lenders that have collapsed this year.

Banks in Nebraska, Mississippi and Illinois were shut yesterday, according to statements on the Federal Deposit Insurance Corp.’s website. The failures drained $313.6 million from the FDIC’s deposit-insurance fund.

Regulators are closing banks at the fastest pace since the 1990s amid loan losses tied to real estate. The FDIC’s list of “problem” lenders is the longest since 1992. FDIC Chairman Sheila Bair said the confidential list rose to 775 banks with $431 billion in assets in the first quarter. That’s an increase from 702 banks with $402.8 billion in assets at the end of the fourth quarter.

The biggest bank seized yesterday was TierOne Bank in Lincoln, Nebraska, with $2.2 billion in deposits and $2.8 billion in assets. Great Western Bank of Sioux Falls, South Dakota, acquired the bank’s operations and its 69 branches. Great Western agreed to pay the FDIC a premium of 1.5 percent for TierOne’s deposits. The agency will share in losses on $1.9 billion of assets.

Full article here [1]