Two More Banks Fail; 2011 Total at 63

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WASHINGTON – Two more banks have failed, with an estimated cost to the FDIC of approximately $160 million.

Regulators closed $111-million Bank of Shorewood in Shorewood, Ill., and $549-million Bank of Whitman in Colfax, Wash. The failures brought the year’s total to 63.

The FDIC said it has found buyers for both institutions. Heartland Bank and Trust Co. in Bloomington, Ill., agreed to assume all of Bank of Shorewood’s $104 million in deposits and acquire virtually all of its assets. The failure, the sixth in Illinois this year, was estimated to cost the Deposit Insurance Fund $25.6 million.

All of Bank of Whitman’s $516 million in deposits will go to Columbia State Bank in Tacoma, Wash. The acquirer also agreed to purchase about $314 million of the failed bank’s assets. The failure, which was the third in Washington state this year, was estimated to cost $135 million.


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