With two more, US bank failures reach 94 in 2009: FDIC

I / Washington September 19, 2009, 15:11 IST

Two more US banks have closed down — including the sixth largest bank bankruptcy this year — to bring the total number of bank failures this year to 94, according to the government banking insurer.  

The Indiana-based Irwin Union Bank was shuttered with a total of $2.7 billion in assets and total deposits of some $2.1 billion, the Federal Deposit Insurance Corporation (FDIC) said in a statement yesterday.  

In the same group, the Kentucky-based Irwin Union Bank failed with assets of $493 million and total deposits of some $441 million.  

The institutions were banking subsidiaries of the Columbus, Indiana-based Irwin Financial Corporation.With 27 branch locations between them, the two banks are set to reopen under regular business hours today as branches of First Financial Bank, with deposits continuing to be insured by the FDIC.  

After suffering no bank failures at all in 2005 and 2006, the US banking system saw three banks going under in 2007, followed by 25 in 2008.  

With the bankruptcies yesterday, the institutions brought the number of bank failures this year to 94 — highlighting the extreme stress that the global financial crisis has placed on US banking institutions.

The FDIC said it estimated the transactions would cost the government's Deposit Insurance Fund $850 million.