Regulators Shutter Two Community Banks
WASHINGTON (TheStreet) -- Regulators shut down two banks Friday, bringing this year's tally of U.S. bank and thrift failures to 22.
TheStreet.com Ratings had previously assigned both institutions E-minus (Very Weak) financial strength ratings, and both were included in TheStreet.com's list of undercapitalized banks.
Carson River Community Bank
The Nevada Department of Business and Industry closed Carson River Community Bank of Carson City, Nev. and appointed the Federal Deposit Insurance Corp. receiver. The FDIC arranged for Heritage Bank of Nevada, of Reno, Nev. to assume the failed bank's $50 million in total deposits and $38 million of its $51 million in assets.The FDIC retained the remaining assets for later disposition and agreed to share in losses on $28.5 million of the acquired assets. Carson River Community's office was scheduled to reopen Monday as a branch of Heritage Bank of Nevada. The FDIC estimated the cost to its insurance fund would be $7.9 million.
Rainier Pacific BankMeanwhile, Washington regulators shuttered Rainier Pacific Bank of Tacoma, Wash., which was held by Rainier Pacific Financial (RPFG). The FDIC was appointed receiver and sold the failed bank's $446 million in total deposits for a 1.04% premium to Umpqua Bank of Roseburg, Ore., the main subsidiary of Umpqua Holdings (UMPQ). This was Umpqua's second acquisition of a failed bank this year. The company purchased the failed Evergreen Bank of Seattle in January. > > Bull or Bear? Vote in Our Poll In addition to the deposits, Umpqua agreed to assume roughly $670 million of Rainier Pacific's $718 million in total assets, with the FDIC retaining the rest for later disposition. The agency agreed to share in losses on $578 million of the acquired assets and estimated the cost to its insurance fund would be $95.2 million. Rainier Pacific's 14 branches were set to reopen during normal business hours as Umpqua Bank branches.
Ongoing Bank Failure CoverageAll previous bank and thrift failures since the beginning of 2008 are detailed in TheStreet.com's interactive bank failure map:
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