WASHINGTON — Regulators closed $3.5 billion-asset Frontier Bank in Everett, Wash., and three other smaller banks in the Midwest to bring the year’s failure total to 64.
On a night when the Federal Deposit Insurance Corp. also
In all, the seven failures Friday were estimated to cost the FDIC over $7 billion.
The agency said Union Bank in San Francisco will assume all of Frontier’s $3.1 billion in deposits, and acquire virtually all of its assets. The buyer and the FDIC will share losses on just over $3 billion of those assets. The failure was estimated to cost the FDIC $1.37 billion.
In the Michigan closure, First Michigan Bank in Troy agreed to assume all of CF Bancorp’s $1.4 billion in deposits, paying a 0.75% premium. First Michigan will also acquire $870 million of the failed bank’s assets, and share losses with the FDIC on $808 million of those assets. The failure was estimated to cost the agency $615 million.
The operations of Champion Bank will be transferred to BankLiberty in Liberty, Mo. The acquirer agreed to assume all of Champion’s $154 million in deposits without paying a premium, and purchase $153 million of the failed bank’s assets. BankLiberty and the FDIC will share losses on $113 million of those assets. The failure was estimated to cost about $53 million.
First Bank in Butler, Mo., agreed to assume all of BC National Banks’ $55 million in deposits without paying a premium. It will take over virtually all of the failed bank’s assets while sharing losses on $38 million of those assets with the FDIC. The failure was estimated to cost the agency $11 million.
Earlier in the evening, the FDIC announced three resolutions of Puerto Rican institutions: $12 billion-asset Westernbank Puerto Rico in Mayaguez, $6 billion R-G Premier Bank in Hato Rey and $2.5 billion-asset Eurobank in San Juan.