Two more US banks close, taking total this year to 22

Rainier Pacific Bank had about $717.8 million in total assets and $446.2m in total deposits as of December 31, 2009, FDIC said. (AFP)

Regulators seized two US banks in Nevada and Washington state on Friday, bringing the year total to 22 as small institutions continue to struggle with bad loans.

The Federal Deposit Insurance Corp said Rainier Pacific Bank in Tacoma, Washington, was closed, and its deposits were assumed by Umpqua Bank of Roseburg, Oregon.

Carson River Community Bank in Carson City, Nevada also was closed, and its deposits were assumed by Heritage Bank of Nevada, Reno, Nevada, the FDIC said.

The agency said earlier this week that the number of 'problem' US banks jumped 27 per cent during the fourth quarter of 2009 to 702, the highest level since 1993 and a sign that the industry's recovery remains uneven. The vast majority of those banks do not fail, but the size of the list indicates the number of institutions with significant weaknesses.

Rainier Pacific Bank had about $717.8 million (Dh2636.5m) in total assets and $446.2m in total deposits as of December 31, 2009, the FDIC said.

It said Umpqua Bank would pay the FDIC a premium of 1.04 per cent to assume the failed bank's deposits. It also was buying about $670.1m of Rainier Pacific Bank's assets, and entered in a loss-share transaction on $578.1m.

Carson River Community Bank had about $51.1m in total assets and $50m in total deposits as of December 31, 2009, said FDIC.

 

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