Two failures late Friday – one in Minnesota and one in Missouri – cost the Deposit Insurance Fund nearly $190 million.
State regulators seized The RiverBank, a $417 million-asset Wyoming, Minn., institution, and the $356 million-asset Sun Security Bank of Ellington, Mo. The two closures brought the industry’s total this year to 76.
The Federal Deposit Insurance Corp., which was appointed receiver for both failed institutions, sold all of The RiverBank’s $379 million of deposits and roughly all of its assets to Central Bank of Stillwater, Minn. The FDIC agreed to share losses with the buyer on $339 million of The RiverBank's assets. The failure, the second in Minnesota this year, was estimated to cost the FDIC about $71 million.
Meanwhile, the FDIC brokered a deal with Great Southern Bank of Springfield, Mo., for the operations of Sun Security, which was the state’s first failure of 2011. Great Southern agreed to assume all of the failed bank’s $290 million of deposits and acquire essentially all of its assets. A loss-sharing deal between the FDIC and Great Southern will cover nearly $352 million of Sun Security’s assets. The failure’s cost to the insurance fund was estimated at $118 million.
