Regulators Seize 2 Banks; 94 Failures This Year

STEPHEN BERNARD

NEW YORK (AP) — Regulators shut down two banking units of Irwin Financial Corp. Friday, marking the 93rd and 94th failures this year of federally insured banks.

The Federal Deposit Insurance Corp. was appointed receiver of Louisville, Ky.-based Irwin Union Bank FSB and Columbus, Ind.-based Irwin Union Bank and Trust Co.

As of Aug. 31, Irwin Bank FSB had $493 million in assets and $441 million in deposits, while Irwin Union Bank and Trust had $2.7 billion in assets and $2.1 billion in deposits.

The FDIC said Friday both bank's deposits will be assumed by First Financial Bank in Hamilton, Ohio.

First Financial also agreed to purchase essentially all of the two banks' assets. The FDIC and First Financial Bank reached a loss-share agreement covering about $2.5 billion of the two banks' combined assets.

The 27 combined branches of Irwin Union Bank FSB and Irwin Union Bank and Trust will be reopened during their normal business hours beginning Saturday as branches of First Financial Bank.