Tally of US bank collapses climbs to 139

THE Federal Deposit Insurance Corp (FDIC) said that US regulators have closed seven more banks, bringing the total number of bank collapses so far this year to 139.

The biggest was Hillcrest Bank of Overland Park, Kansas, which had approximately $1.65bn (£1.05bn) in total assets and $1.54bn in total deposits.

Regulators also closed First Arizona Savings, Scottsdale, Arizona; First Suburban National Bank, Maywood, Illinois; First National Bank of Barnesville, Barnesville, Georgia; Gordon Bank, Gordon, Georgia; Progress Bank of Florida, Tampa, Florida; and First Bank of Jacksonville, Jacksonville, Florida.

A newly chartered bank subsidiary of NBH Holdings Corp, Boston, Massachusetts, will assume all of the deposits of Hillcrest Bank.

The new NBH subsidiary, also called Hillcrest Bank, also agreed to purchase essentially all of the failed bank's assets, the FDIC said.

First Arizona Savings had approximately $272.2m in total assets and $198.8m in total deposits.

The FDIC said it was unable to find another financial institution to take over the banking operations of First Arizona Savings.