The tally of 25 bank failures this year all but guarantees the number that fall into the arms of regulators will surpass what was seen in 2008. Two of the nation's largest savings and loans failed in 2008: Washington Mutual Inc. and IndyMac Bank. Last year's total was more than in the previous five years combined and up from only three failures in 2007.
The latest banks seized were American Sterling Bank in Missouri and Great Basin Bank of Nevada. The Federal Deposit Insurance Corp. will continue to insure deposits. Regular deposit accounts are insured up to $250,000.
Customers of both banks can still write checks and use ATM or debit cards.
The federal Office of Thrift Supervision took over American Sterling, while the Nevada Financial Institutions Division took control of Great Basin Bank of Nevada. The FDIC was appointed receiver of both banks.
The Missouri offices of American Sterling will reopen Saturday. Those in California and Arizona will open Monday. All will open as branches of Metcalf Bank. Depositors of American Sterling will automatically become depositors of Metcalf.
American Sterling is based in Sugar Creek, Mo. It had $181 million in assets and $171.9 million in deposits as of March 20. In addition to assuming the deposits of the failed bank, Metcalf Bank, based in Lee's Summit, Mo., agreed to buy about $173.6 million in assets. The FDIC will retain the rest of the assets to sell later.
The last FDIC-insured institution to fail in Missouri was Hume Bank, in Hume, in March last year.
For Great Basin Bank, based in Elko, Nev., the FDIC tapped Las Vegas-based Nevada State Bank to assume all deposits.
The offices of Great Basin Bank of Nevada will reopen Monday as branches of Nevada State Bank. Depositors of Great Basin Bank of Nevada will automatically become depositors of Nevada State.
As of Dec. 31., Great Basin Bank of Nevada had assets of $270.9 million and deposits of $221.4 million. Nevada State Bank agreed to assume all the deposits of the failed bank and purchase about $252.3 million of assets. The FDIC also will keep the bank's remaining assets for future sale.
The last FDIC-backed institution to be closed in Nevada was Security Savings Bank, in Henderson, on Feb. 27.