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Two Banks Fail; 2011 Tally at 63

WASHINGTON (TheStreet) -- Regulators on Friday shuttered two banks, bringing this year's total number of U.S. bank failures to 63.

Both failed banks were previously included in TheStreet's second-quarter Bank Watch List of undercapitalized institutions, based on regulatory data provided by SNL Financial.

Bank of Shorewood

The Illinois Department of Financial and Professional Regulation closed Bank of Shorewood, which had $110.7 million in total assets and $104 million in deposits when it failed.

The Federal Deposit Insurance Corp. was appointed receiver and sold the failed institution to Heartland Bank and Trust Co. of Bloomington, Ill.

The failed bank's three offices -- including the branch operating as Bank of Elwood -- were set to reopen Saturday as Heartland Bank and Trust branches.

The FDIC estimated the cost of Bank of Shorewood's failure to the deposit insurance fund would be $25.6 million.

Heartland Bank and Trust's previous failed-bank acquisition was Western Springs National Bank and Trust, which was shut down by the Office of the Comptroller of the Currency in April.

Bank of Whitman

The Washington State Department of Financial Institutions took over Bank of Whitman, of Colfax, Wash., which had $548.6 million in total assets and $515.7 million in deposits. The FDIC was appointed receiver and sold the failed institution's deposits to Columbia State Bank of Tacoma, Wash.

Columbia State Bank also agreed to take on $314.4 million of the failed bank's assets, with the FDIC retaining the rest for later disposition.

Only eight of Bank of Whitman's 20 branches will reopen, and the FDIC has provided a detailed guide on which branches will reopen, and which will remain closed. The eight remaining Bank of Whitman branches will reopen during normal business hours Monday, as branches of Columbia State Bank.

The acquiring institution is the main subsidiary of Columbia Banking System (COLB), and previously acquired the failed First Heritage Bank of Snohomish, Wash., in May.

The FDIC estimated that Bank of Whitman's failure would cost the deposit insurance fund $134.8 million.

Thorough Bank Failure Coverage

All bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2011 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

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-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

To submit a news tip, send an email to: tips@thestreet.com.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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