It was a busy week in banking for private-equity financier Wilbur L. Ross Jr.

After announcing earlier this week that his W.L. Ross & Co. plans to invest $45 million into the struggling Cascade Bancorp in Bend, Ore., another bank in his portfolio picked up one of the three banks that failed Friday.

The three failures, which had a combined $969.4 million in assets, are expected to cost the Deposit Insurance Fund $200 million. The Friday failures brought the total number of banks to fail this year to 149.

The Wisconsin Department of Financial Institutions closed the $750.7 million-asset First Banking Center in Burlington. The Federal Deposit Insurance Corp. sold essentially all of that bank's assets to the $1.3 billion-asset First Michigan Bank in Troy, Mich.

In April, Ross led a $200 million infusion First Michigan, when it had just $100 million in assets, which in turn allowed it to buy the $900 million-asset CF Bancorp of Port Huron out of receivership.

First Michigan agreed to pay a 0.5% premium on First Banking's $664.8 million deposits and entered into a loss-sharing agreement with the FDIC on $515.6 million of the failed bank's assets. First Banking's failure is expected to cost the Deposit Insurance Fund $142.6 million. It was the second bank to fail in Wisconsin this year.

Earlier in the evening, the Florida Office of Financial Regulation closed Gulf State Community Bank in Carrabelle.

The FDIC sold nearly all of the bank's $112.1 million assets to Centennial Bank in Conway, Ark. With Gulf State, the $3 billion-asset Centennial has bought six Florida banks from the FDIC this year.

Centennial assumed Gulf State's $112.2 million in deposits without paying a premium and entered into a loss-sharing agreement with the FDIC on $84.4 million of the bank's assets.

Gulf State's failure is expected to cost the Deposit Insurance Fund $42.7 million. It is the 147th bank to fail this year and the 28th in Florida.

In the northeast, the Secretary of the Pennsylvania Department of Banking shuttered the $106.6 million-asset Allegiance Bank of North America. The FDIC sold essentially all of Allegiance's assets to the $1.3 billion-asset VIST Bank in Wyomissing, Pa.

VIST agreed to pay a 0.5% premium on Allegiance's $92 million deposits and entered into a loss-sharing agreement on $86.2 million of assets.

Allegiance is the first bank to fail in Pennsylvania this year and is expected to cost the Deposit Insurance Fund $14.2 million.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.