Regulators shut 3 more banks for total of 61 in 2011

Posted July 29, 2011, at 8:59 p.m.
Last modified July 30, 2011, at 5:15 a.m.

WASHINGTON — Regulators on Friday shut down a trio of banks in Indiana, Virginia and South Carolina, boosting to 61 the number of U.S. bank failures this year.

The pace of closures has slowed, however, as the economy has stabilized and banks work their way through the bad debt accumulated in the Great Recession. By this time last year, regulators had shuttered 108 banks.

The Federal Deposit Insurance Corp. seized the three banks, the largest by far being Integra Bank, based in Evansville, Ind., with 52 branches, $2.2 billion in assets and $1.9 billion in deposits.

Also shuttered were Virginia Business Bank, with one branch in Richmond, Va., $95.8 million in assets and $85 million in deposits, and BankMeridian, based in Columbia, S.C., with three branches, $239.8 million in assets and $215.5 million in deposits.

Old National Bank, also based in Evansville, agreed to assume the assets and deposits of Integra Bank. In addition, the FDIC and Old National Bank agreed to share losses on $1.2 billion of Integra Bank’s loans and other assets.