WASHINGTON — Regulators shuttered two small banks in Illinois late Friday, bringing the year's failure total to 36.

First, state regulators closed $537 million-asset Strategic Capital Bank in Champaign. The Federal Deposit Insurance Corp., appointed as the bank's receiver, sold all $471 million in deposits and virtually all of its assets to Midland States Bank in Effingham.

Later, the Office of the Comptroller of the Currency announced the seizure of $437 million-asset Citizens National Bank in Macomb. The FDIC said Morton Community Bank will assume all $200 million of the failed bank's nonbrokered deposits, and agreed to buy about $240 million of Citizens National's assets. The FDIC will pay about $200 in brokered deposits directly.

The failures come amid heightened resolution activity by the FDIC, and continued losses to the Deposit Insurance Fund. One day earlier, regulators seized $13 billion-asset BankUnited in Coral Gables, Fla., and sold it to an investor team, in the largest failure of the year. The estimated price tag for BankUnited's resolution came to $4.9 billion, making it the second costliest failure of the crisis, behind IndyMac Bank.

The FDIC said Strategic Capital will reopen as a branch of Midland States on Tuesday. In its deal with the buyer, the FDIC agreed to share in losses on roughly $420 million of Strategic Capital's assets. The failure is estimated to cost the DIF $173 million.

The FDIC and Morton Community agreed to a similar loss-sharing agreement on about $200 million of Citizens National's assets. The failed bank will reopen on Saturday as branches of Morton Community. The FDIC said the failure is estimated to cost the DIF $106 million.

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