State regulators close two banks

Reuters News
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Posted: Mar 23, 2012 7:33 PM

WASHINGTON (Reuters) - State regulators on Friday closed two banks, one in Georgia and the other in Illinois, bringing the total number of bank failures in the U.S. this year to 15.

The Federal Deposit Insurance Corporation, which was appointed receiver, said Covenant Bank & Trust of Rock Spring, Georgia, was closed on Friday. The bank's two branches will reopen on Monday as part of Stearns Bank NA, St. Cloud, Minn.

Covenant Bank & Trust had about $95.7 million in total assets and $90.6 million in total deposits.

The pace of bank failures has slowed as the economy and the financial industry recovers from the 2007-2009 financial crisis.

Most recent closures have been smaller banks, particularly those with less than $1 billion in assets.

Premier Bank in Wilmette, Illinois was also closed Friday, the FDIC said. The bank's two branches will reopen on Saturday as part of the International Bank of Chicago.

Premier Bank had about $268.7 million in total assets and $199 million in total deposits as of December 31.

In 2010 157 banks with $92.1 billion in total assets failed while 92 institutions with $34.9 billion in total assets were closed in 2011.

(Reporting by Ayesha Rascoe; editing by Carol Bishopric)