Seven More Banks Closed by Regulators

Friday saw the closure of seven more banks in six states, for a total of twelve so far in October. The banks were First Arizona Savings, Scottsdale, Ariz.; First Bank of Jacksonville, Jacksonville, Fla.; Progress Bank of Florida, Tampa, Fla.; First National Bank of Barnesville, Barnesville, Ga.; Gordon Bank, Gordon, Ga.; First Suburban National Bank, Maywood, Ill. and Hillcrest Bank of Overland Park, Kan.

While six banks of the banks were taken over by other banks, First Arizona Savings found no such rescue, so on Monday checks for all insured funds will be mailed by the Federal Deposit Insurance Corp. (FDIC) to depositors. The bank had $1.8 million in uninsured funds at closing, out of approximately $272.2 million in total assets and $198.8 million in total deposits.

The largest bank of the group was Hillcrest Bank. Hillcrest, which will be taken over by a newly chartered bank subsidiary of NBH Holdings Corp. in Boston, had approximately $1.65 billion in total assets and $1.54 billion in total deposits. The new NBH subsidiary is also called Hillcrest Bank, and has agreed not only to assume all of the deposits of the shuttered Hillcrest Bank but also to purchase essentially all of the failed bank's assets, according to the FDIC.