Two More US Banks Fail
(AP) -- US federal regulators closed two small Western banks Friday, bringing to seven the number of US banks that have failed this year.
The banks, owned by First National Bank Holding Co. of Scottsdale, Arizona, will have their deposits and some assets transferred to Mutual of Omaha Bank, according to the Federal Deposit Insurance Corp., or FDIC.
One bank, First National Bank of Nevada, based in Reno with $3.4 billion in assets, also operates as First National Bank of Arizona. The other, First Heritage Bank, based in Newport Beach, California, had $254 million in assets and primarily served businesses. The banks were undercapitalized, the Office of the Comptroller of the Currency said Friday.
Bill Uffelman of the Nevada Bankers Association called the FDIC action "a reflection of the times for the banks." The world's largest banks and securities firms have announced more than $468 billion in writedowns and credit losses since the start of 2007.
Sheila Bair, chairwoman of the FDIC, has said bank failures will increase as foreclosures rise and home sales slump.
The banks, owned by First National Bank Holding Co. of Scottsdale, Arizona, will have their deposits and some assets transferred to Mutual of Omaha Bank, according to the Federal Deposit Insurance Corp., or FDIC.
One bank, First National Bank of Nevada, based in Reno with $3.4 billion in assets, also operates as First National Bank of Arizona. The other, First Heritage Bank, based in Newport Beach, California, had $254 million in assets and primarily served businesses. The banks were undercapitalized, the Office of the Comptroller of the Currency said Friday.
Bill Uffelman of the Nevada Bankers Association called the FDIC action "a reflection of the times for the banks." The world's largest banks and securities firms have announced more than $468 billion in writedowns and credit losses since the start of 2007.
Sheila Bair, chairwoman of the FDIC, has said bank failures will increase as foreclosures rise and home sales slump.