The FDIC Closes Four New Banks

Since last summer’s high-profile bank failures of multi-billion dollar, IndyMac Bank and Washington Mutual Bank, most of the banks which have closed have been smaller in size and generally banks serving local markets. The FDIC has closed four more smaller-sized banks last week as the pace of bank failures in the United States has begun to accelerate. The FDIC was able to enter into purchase and assumption agreements with four new banks to assume the deposits and reopen the branches on Tuesday of the bank that were closed. Customers of the clsoed banks will have immediate access to their funds according to the FDIC. The banks which have joined the list of failed institutions are:

Pinnacle Bank, Beaverton, OR which will have their deposits assumed by Washington Trust Bank of Spokane, Washington

Corn Belt Bank and Trust Company Pittsfield, IL  which will have their deposits assumed by The Carlinville National Bank of Carlinville, Illinois

Riverside Bank of the Gulf Coast, Cape Coral, FL which will have their deposits assumed by TIB Bank of Naples, Florida

Sherman County Bank, Loup City, NE which will have their deposits assumed by Heritage Bank of Wood River, Nebraska

For bank customers with questions regarding FDIC insurance and the temporary insurance limit increase to $250,000, a public service announcement from the FDIC is available.

Suzy Orman on FDIC EDIE Tool

The EDIE (Electronic Deposit Insurance Estimator) tool that financial expert Suzy Orman and FDIC Chairman Sheila Bair have been promoting is available at the FDIC website.