FDIC Closes Two More Banks

Bank closures appear to be picking up. The Feds closed two banks yesterday:

• First National Bank of Nevada, Reno, NV – Assets of $3.4 billion – Deposits of $3 billion (FDIC info)
• First Heritage Bank, N.A., Newport Beach, CA – Assets of $254 million – Deposits of $233 million (FDIC info)

As you can see from the FDIC list of failed banks, two closures on the same day are rare.

The FDIC press release does have some good news regarding these closures. All insured and uninsured deposits from both banks have been transferred to the acquiring bank:

All depositors, including those with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of Mutual of Omaha Bank for the full amount of their deposits.