U.S. Bank of Minneapolis, a division of U.S. Bancorp, on Saturday assumed the deposits and assets of California National Bank of Los Angeles and eight smaller related banks shut down by federal regulators.
The banks closed on Friday by the Federal Deposit Insurance Corp. are in California, Illinois, Texas and Arizona. They were divisions of privately held FBOP Corp., a bank holding company based in Oak Park, Ill.
The banks had combined assets of $19.4 billion and deposits of $15.4 billion at the end of September, the FDIC said. The banks had 153 offices, all of which reopened as U.S. Bank branches Saturday.
FBOP Corp. itself, which wasn't closed under the deal, grew from one bank with assets of $125 million in 1990. From 1990 to 2007 the company acquired 28 banks, according to its website.
The closing of nine banks in one day was the most the FDIC has shut since the financial crisis began taking down banks last year. The closings boost the number of failed U.S. banks this year to 115. In 1989, during the savings-and-loan crisis, the FDIC closed 534 banks, or about 10 a week.
Besides California National Bank, the banks involved in the latest round were Bank USA, NA, in Phoenix; San Diego National Bank; Pacific National Bank in San Francisco; Park National Bank in Chicago; Community Bank of Lemont in Illinois; and three Texas banks: North Houston Bank, Madisonville State Bank, and Citizens National Bank in Teague.
ASSOCIATED PRESS
