U.S. regulators said Friday they have closed First State Bank in Camargo, Okla., and Evergreen State Bank in Stoughton, Wis.
The Federal Deposit Insurance Corp. said the banks were being acquired by others in their respective states.
The failures brings 2011's tally of closed banks to nine. The number of banks that failed last year--157--was the highest since the savings and loan crisis ended in 1992, although the total assets at those fallen banks was much smaller than the total the year before. That's because the trend has shifted to smaller banks that serve struggling local economies from larger banks that took on too much housing risk.
First State Bank is being acquired by Bank 7 of Oklahoma City, which will assume all deposits. The bank had about $43.5 million in total assets and $40.3 million in total deposits with a single branch as of Sept. 30. On Monday, that branch will reopen as a branch of Bank 7.
Bank 7, which has three other locations in Oklahoma, agreed to purchase "essentially all of the assets" of First State Bank, the FDIC said.
Evergreen State Bank will be taken over by McFarland State Bank of McFarland, Wis., in a purchase and assumption agreement for essentially all the assets and all the deposits.
Evergreen had about $246.5 million in total assets and $195.2 million in total deposits with four branches as of Sept. 30. Evergreen's branches will reopen Saturday as McFarland locations.
Depositors at the failed banks will automatically become depositors of the new banks, and their deposits will continue to be insured by the FDIC. The FDIC insures deposits for up to $250,000 per depositor.
The FDIC estimated that the cost of the failures will be $42.9 million to the Deposit Insurance Fund. It said that the acquisitions were the least costly route.
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