US regulators close 2 banks in Illinois, Florida

Published on NewsOK Modified: June 20, 2014 at 6:00 pm •  Published: June 20, 2014
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NEW YORK (AP) — Regulators have closed two lenders in Illinois and Florida, bringing U.S. bank failures this year to 11 after 24 closures in all of 2013.

The Federal Deposit Insurance Corp. said Friday that it has taken over Valley Bank in Moline, Illinois. The bank had 13 branches, assets of $456.4 million and deposits of $360 million.

Great Southern Bank of Reeds Spring, Missouri, will assume all of the deposits of Valley Bank. It's the 10th bank to fail this year, and the third in Illinois.

The FDIC also is taking over another Valley Bank, this one based in Fort Lauderdale, Florida. It has four branches, assets of $81.8 million and deposits of $66.5 million. Landmark Bank N.A. of Fort Lauderdale is assuming all of the deposits of Valley Bank. Valley Bank of Fort Lauderdale is this year's first bank failure in Florida.

The two bank failures are expected to cost the deposit insurance fund $51.4 million and $7.7 million, respectively.

U.S. bank failures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.

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