Two banks fold, bringing total to 15 failures this year

SAN FRANCISCO (MarketWatch) — Northville, Mich.-based Main Street Bank and Eldred, Ill.-based Meridian Bank became the latest victims of the ongoing financial crisis on Friday, when they folded and their deposits were transferred by the Federal Deposit Insurance Corp.

The closures are the 14th and 15th bank failures so far this year.

The FDIC said in a prepared statement that Main Street Bank had $98 million in total assets and $86 million in total deposits as of Tuesday. All of Main Street’s deposits were assumed by Monroe, Mich.-based Monroe Bank & Trust, the FDIC said.

The FDIC said that Meridian Bank had total assets of $39.2 million and $36.9 million in total deposits as of Sep. 25. National Bank will buy roughly $7.6 million of Meridian’s assets, while the FDIC will “retain the remaining assets for later disposition,” according to its statement. All of Meridian Bank’s depositors, “including any with deposits in excess of the FDIC’s insurance limits,” will automatically become depositors of Hillsboro, Ill.-based National Bank, the FDIC said.
The FDIC said Main Street Bank’s failure will cost its insurance fund between $33 million and $39 million, while Meridian’s failure will cost the fund between $13 million and $14.5 million. End of Story

By John Letzing, MarketWatch
Last update: 6:50 p.m. EDT Oct. 10, 2008

Source: MarketWatch

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