WASHINGTON Regulators seized the two subsidiaries of Iowa-based River Valley Bancorp. on Friday, one in Illinois and the other in Florida.
Both institutions were named Valley Bank, with the larger one based in Moline, Ill. and holding $456 million of assets. Its $360 million in deposits and $375 million of its assets were sold to Great Southern Bank of Reeds Spring, Missouri.
The smaller Valley Bank, located in Fort Lauderdale, Fla., saw almost all of its $81.8 million in assets and $66.5 million in deposits sold to nearby Landmark Bank.
The Federal Deposit Insurance Corp. estimated the combined cost of the failures would be $59 million.
The two Valley Banks were the only insured subsidiaries of River Valley Bancorp., and had each experienced regulatory trouble. Last year, the FDIC ordered Valley Bank in Moline, Ill., to conduct a full audit of its books and records as well as appoint a president and chief executive officer. Regulators separately issued a consent order against the Florida-based Valley Bank earlier this year, requiring it to develop a conflict-of-interest policy, clean up its loan portfolio and raise capital.