WASHINGTON — Regulators closed three more banks Friday evening to bring the year’s failure total to 133.
The closed institutions were: $511 million-asset SolutionsBank in Overland Park, Kan., $433 million-asset Republic Federal Bank in Miami and $40 million-asset Valley Capital Bank in Mesa, Ariz.
The Federal Deposit Insurance Corp. said all depositors were protected in the seizures, and the three resolutions together would cost the government an estimated $252 million.
SolutionsBank, the target of an Oct. 27 prompt corrective action directive from the Federal Reserve Board, was closed by the Kansas state banking regulator. The FDIC said all of its $421 million in deposits would be assumed by Arvest Bank in Fayetteville, Ark., which did not pay a premium. Arvest also agreed to buy roughly all of the failed bank’s assets. It will share losses with the FDIC on a $411 million-asset pool of those assets. The failure is estimated to cost the government $122 million, the FDIC said.
The other two banks were closed by the Office of the Comptroller of the Currency.
Republic Federal, the 13th institution to be shuttered in Florida this year, was estimated to cost the FDIC $122.6 million. 1st United Bank in Boca Raton agreed to assume all $352 million of the failed bank’s deposits, and will pay a 1.2% premium. 1st United will also acquire $267 million of the failed bank’s assets, and share losses with the FDIC on a $210 million pool of those assets.
Enterprise Bank & Trust in Clayton, Mo., agreed to take over the operations of Valley Capital. The acquirer paid a 2% premium for the failed bank’s deposits, and agreed to purchase roughly all of its assets. The FDIC and Enterprise agreed on a loss-sharing deal for nearly $30 million of those assets. The failure was estimated to cost $7.4 million.