WASHINGTON — Federal and state regulators shut five banks in Iowa, Missouri, Arizona and Illinois late Friday, raising the number of failures this year to 89.
All of the collapses were relatively small, holding a combined $1.1 billion in assets, but were expensive given their size. The four failures were estimated to cost the Deposit Insurance Fund $401 million.
The largest failure was that of $458 million-asset Vantus Bank of Sioux City, Iowa, a 76-year old thrift that changed its name from First Federal Savings and Loan Association of Sioux city in 2007.
The Office of Thrift Supervision said Vantus was undercapitalized, "with no reasonable prospect of becoming adequately capitalized, and was unlikely to be able to pay its obligations or meet its depositors' demands in the normal course of business."
The Federal Deposit Insurance Corp., which was appointed as receiver, said the failure is expected to cost $168 million.
The failed thrift was purchased by Great Southern Bank of Springfield, Missouri, under a purchase and assumption agreement. Great Southern agreed to take all the deposits of the failed thrift, and purchase approximately $387 million of its assets. The FDIC will retain the remaining assets for later disposition.
Like many recent failures, the agency entered into a loss sharing agreement on approximately $338 million on Vantus' assets.
The OTS also shut down $345.6 million Platinum Community Bank of Rolling Meadows, Illinois.
The agency said the thrift was "unlikely to be able to pay its obligations or meet its depositors' demands in the normal course of business."
The FDIC was unable to find a buyer for the bank. Instead, the agency said it will pay out the insured deposits on Tuesday. Platinum had total deposits of $305 million.
Platinum's failure is expected to cost the DIF $114.3 million.
The thrift failures followed the collapse of $212 million-asset InBank of Oak Forest, Illinois. Chicago-based MB Financial Bank agreed to purchase virtually all of InBank's $199 million in deposits and assets.
The FDIC estimated the failure would cost the Deposit Insurance Fund $66 million.
The final collapse on Friday was that of $105 million-asset First State Bank of Flagstaff, Arizona. The vast majority of the bank's assets and $95 million in deposits were purchased by Sunwest Bank of Tustin, California.
The FDIC said First State Bank's failure was expected to cost $47 million.
The first failure of the evening was $16 million-asset First Bank of Kansas City, Missouri. Great American Bank of De Soto, Kansas, agreed to purchase all of First Bank's $15 million in deposits.
The FDIC estimated the failure would cost $6 million.
