FDIC Friday: Columbian Bank and Trust of Kansas Shut by Regulators
August 23rd, 2008Via: Reuters:
Columbian Bank and Trust Co. of Topeka, Kansas, was closed by U.S. regulators today, the ninth U.S. bank to collapse this year amid bad real-estate loans and writedowns stemming from a drop in home prices.
The bank, with $752 million in assets and $622 million in total deposits, was shuttered by the Kansas state bank commissioner’s office and the Federal Deposit Insurance Corp., the FDIC said today in a statement.
Citizens Bank and Trust will assume the failed bank’s insured deposits. Columbian Bank’s nine branches will open Aug. 25 as Citizens Bank and Trust offices, the FDIC said. Customers can access their accounts over the weekend by writing checks or using ATM or debit cards.
“There is no need for customers to change their banking relationship to retain their deposit insurance coverage,” the FDIC’s statement said.
The pace of bank closings is accelerating after financial companies reported more than $500 billion in writedowns and credit losses since the start of 2007. The FDIC’s “problem” bank list grew by 18 percent in the first quarter from the preceding three-month period, to 90 banks with combined assets of $26.3 billion.
FDIC Chairman Sheila Bair said last month she expected more lenders to fail this year as the pace of shutdowns rises from historically low levels.
