The Federal Deposit Insurance Corp. or FDIC, announced Friday the shuttering of a small bank in Idaho, taking the count of total U.S. bank closures in 2014 to three, after 24 in 2013, 51 in 2012, 92 in 2011 and the 157 bank closures in 2010.
Syringa Bank, Boise, Idaho, was closed by the Idaho State Banking Department. Sunwest Bank, Irvine, California, agreed to take over the deposits of the failed bank as part of a purchase-and-assumption deal with the Federal Deposit Insurance Corp.
The FDIC estimates that the cost of the bank failure to the Deposit Insurance Fund will be $4.5 million.
As of September 30, 2013, Syringa Bank had about $153.4 million in total assets and $145.1 million in total deposits.
Sunwest Bank has agreed to pay the FDIC a premium of 0.75 percent to assume Syringa Bank's deposits. In addition to assuming the deposits of the failed bank, Sunwest Bank agreed to buy essentially all of the failed bank's assets.
Depositors of the failed bank automatically will become depositors of Sunwest Bank and will continue to be insured by the FDIC. The FDIC insures deposits for as much as $250,000 per depositor.
According to FDIC, DuPage National Bank, West Chicago, Illinois, was closed by the Office of the Comptroller on January 17, becoming the first bank to fail in 2014. On January 24, regulators closed The Bank of Union, El Reno, Oklahoma.
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by RTT Staff Writer
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