WASHINGTON ( TheStreet) -- Regulators shut down three banks and two thrifts Friday, bringing the 2009 tally of failed U.S. banking institutions to 89. In one of the closings, the Federal Deposit Insurance Corp. did not find an acquirer for the failed institution's deposits. The Missouri Division of Finance took over First Bank of Kansas City and appointed the FDIC receiver. The FDIC sold all of the institution's deposits and branches to Great American Bank of De Soto, Kan. Illinois regulators shut down InBank of Oak Forest, Ill. The FDIC was receiver and sold the failed bank's retail deposits and branches to MB Financial Bank of Chicago, a subsidiary of MB Financial ( MBFI). The Office of Thrift Supervision seized Vantus Bank of Sioux City, Iowa, a subsidiary of First Federal Bancshares ( FFSX). The FDIC was appointed receiver and sold all of Vantus Bank's deposits and branches to Great Southern Bank of Springfield, Mo., which is held by Great Southern Bancorp ( GSBC). The OTS also shuttered Platinum Community Bank of Rolling Meadows, Ill. The FDIC was set to liquidate the thrift and mail checks out to depositors Tuesday. Platinum Community was a subsidiary of privately held Taylor, Bean & Whitaker Mortgage, which filed for bankruptcy protection on Aug. 5 after most of its mortgage business was suspended by the Department of Housing and Urban Development in the wake of a federal investigation connected with the failure of Colonial Bank. Meanwhile, Arizona regulators closed First State Bank of Flagstaff, Ariz. As receiver, the FDIC sold the failed bank's deposits and branches to Sunwest Bank ( SWBC) of Tustin, Calif.
Four of the failed institutions were included in TheStreet.com's list of 116 undercapitalized banks and thrifts, which was based on second-quarter data. Of the 89 institutions on a previous list published by TheStreet.com in late May, 39 have failed. All previous bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive Bank Failure Map. Georgia continues to lead all states with 23 bank or thrift failures during 2008 and 2009, followed by Illinois with 16, California with 14, Florida with eight and Nevada with five. Large bank holding companies that have acquired failed institutions during 2008 and 2009 include J.P. Morgan Chase ( JPM), which acquired Washington Mutual, the largest-ever bank or thrift to fail in the U.S.; SunTrust Banks ( STI); Regions Financial ( RF); Fifth Third Bancorp ( FITB); U.S. Bancorp ( USB); Zions Bancorp ( ZION); PNC Financial ( PNC); and BB&T Corp ( BBT).
First Bank of Kansas City had $16 million in total assets and $15 million in deposits. The failed bank's office was set to reopen Saturday as a branch of Great American Bank. In addition to the office and deposits, Great American took over all of First Bank's assets. The FDIC estimated the cost to its insurance fund would be $6 million.
Vantus Bank had $458 million in total assets and $368 million in deposits. In addition to the deposits, Great Southern Bank acquired $387 million in assets, with the FDIC agreeing to share in losses on $338 million. Vantus Bank's 15 branches were scheduled to reopen Saturday as branches of Great Southern Bank. The FDIC estimated the cost to its insurance fund would be $168 million.
For depositors shopping for high-rate CDs through brokers, it is also important to consider the health of a bank or thrift, since attractive CD rates that are locked in can be lost when an institution fails. Depositors of three of the institutions that failed Friday face this inconvenience. TheStreet.com Ratings issues independent and very conservative financial strength ratings on each of the nation's 8,500 banks and savings and loans. They are available at no charge on the Banks & Thrifts Screener. In addition, the Financial Strength Ratings for 4,000 life, health, annuity, and property/casualty insurers are available on the Insurers & HMOs Screener. TheStreet.com Ratings also provides award-winning stock ratings, which are available on the Stock Ratings Screener. TheStreet.com Ratings was recently ranked the No. 1 independent stock selector during the market meltdown by BNY ConvergEx Group's BNY Jaywalk. -- Written by Philip van Doorn in Jupiter Fla.