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Friday, September 18, 2009

First Bank Failures Announced in Indiana; Kentucky

By Kathryn Glass

FOXBusiness

The first bank failures in Indiana and Kentucky were announced, Friday. The Federal Deposit Insurance Corporation announced it was appointed receiver for Louisville, Kentucky-based Irwin Union Bank, F.S.B., and Columbus, Indiana-based Irwin Union Bank and Trust Co., by the Office of Thrift Supervision and the Indiana Department of Financial Instutions, respectively.

The two failed banks have a total of 27 bank branches and are subsidiaries of the Columbus, Indiana-based Irwin Financial Corporation. Irwin Union Bank and Trust Co. had a total of $2.7 billion in assets and deposits of $2.1 billion, and Irwin Union Bank had total assets of $493 million and deposits of $441 million as of Aug. 31, of this year.

First Financial Bank, N.A. of Hamilton, Ohio, has agreed to enter into a purchase and assumption agreement, where First Financial will assume all of the two bank’s deposits, and nearly all of their assets.

The FDIC and First Financial share in the losses on approximately $2.5 billion of the two bank’s assets. The FDIC expects the failure of the two banks to cost the Deposit Insurance Fund $850 million. There have now been 94 national bank failures so far this year.

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