WASHINGTON — Two failures in the Midwest late Friday cost the Federal Deposit Insurance Corp. an estimated $70 million.
Regulators shuttered The First National Bank of Davis, a $90 million-asset institution in Oklahoma, and the $190 million-asset Legacy Bank in Milwaukee. The two closures brought the year's toll to 25.
The Pauls Valley National Bank, also based in Oklahoma, agreed to pay a substantial 7.5% premium to assume all of First National's $68 million in deposits. Pauls Valley will also acquire about $28 million of the failed bank's deposits. The failure, the second in Oklahoma this year, was estimated to cost the Deposit Insurance Fund $26.5 million.
Most of Legacy's operations were sold to Seaway Bank and Trust Co. in Chicago. The acquirer will assume all of the failed bank's $183 million in deposits and acquire about $166 million of its assets. Seaway entered into a loss-sharing agreement with the FDIC on $120 million of Legacy's assets. The failure, the third this year in the Badger State, was estimated to cost $43 million.