UPDATE #2: Tough day in Illinois, which had two banks taken over by government regulators. Below is the press release from FDIC about Citizens National Bank, followed by news about Strategive Capital Bank:

Citizens National Bank, Macomb, Illinois, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Morton Community Bank, Morton, Illinois, to assume all of the deposits of Citizens National Bank, excluding those from brokers.

Citizens National Bank will reopen on Saturday, May 23, 2009, as branches of Morton Community Bank. Depositors of Citizens National Bank will automatically become depositors of Morton Community Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Morton Community Bank can fully integrate the deposit records of Citizens National Bank.

Over the weekend, depositors of Citizens National Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of May 13, 2009, Citizens National Bank had total assets of $437 million and total deposits of approximately $400 million. Morton Community Bank agreed to purchase approximately $240 million of assets. The FDIC will retain the remaining assets for later disposition.

Morton Community Bank will purchase all deposits, except about $200 million in brokered deposits, held by Citizens National Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who place money with brokers should contact them directly for more information about the status of their deposits.

The FDIC and Morton Community Bank entered into a loss-share transaction on approximately $200 million of Citizens National Bank’s assets. Morton Community Bank will share in the losses on the

asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-866-954-9529. The phone number will be operational this evening until 9:00 p.m., Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m., CT; on Sunday from noon to 6:00 p.m., CT; and thereafter from 8:00 a.m. to 8:00 p.m., CT. Interested parties can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/citizensnational.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $106 million. Morton Community Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Citizens National Bank is the 36th FDIC-insured institution to fail in the nation this year, and the fifth in Illinois. The last FDIC-insured institution to be closed in the state was Strategic Capital Bank, Champaign, earlier today.

UPDATE: Here’s the first closure for Friday, May 22. The FDIC press release is below, followed by Thursday’s closure:

Strategic Capital Bank, Champaign, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Midland States Bank, Effingham, Illinois, to assume all of the deposits of Strategic Capital Bank.

Due to the Memorial Day holiday weekend, the office of Strategic Capital Bank will reopen on Tuesday, May 26, 2009, as a branch of Midland States Bank. Depositors of Strategic Capital Bank will automatically become depositors of Midland States Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Midland States Bank can fully integrate the deposit records of Strategic Capital Bank.

Over the weekend, depositors of Strategic Capital Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of May 13, 2009, Strategic Capital Bank had total assets of $537 million and total deposits of approximately $471 million. In addition to assuming all of the deposits of the failed bank, Midland States Bank agreed to purchase approximately $536 million of assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Midland States Bank entered into a loss-share transaction on approximately $420 million of Strategic Capital Bank’s assets. Midland States Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-866-954-9527. The phone number will be operational this evening until 9:00 p.m., Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m., CT; on Sunday from noon to 6:00 p.m., CT; and thereafter from 8:00 a.m. to 8:00 p.m., CT. Interested parties can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/strategiccapital.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $173 million. Midland States Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Strategic Capital Bank is the 35th FDIC-insured institution to fail in the nation this year, and the fourth in Illinois. The last FDIC-insured institution to be closed in the state was Heritage Community Bank, Glenwood, on February 27, 2009.

Thursday, May 21:

The FDIC got an early start on bank closures this week, shutting down one in Florida and bringing in new management on Thursday. Usually the FDIC steps in on Fridays, giving themselves time to go through the books before re-opening on Monday. Below is the press release on BankUnited. I’ll update this post throughout the day if there are other closures:

BankUnited, a newly chartered federal savings bank, acquired the banking operations, including all of the nonbrokered deposits, of BankUnited, FSB, Coral Gables, Florida, in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC). As a result of this transaction, BankUnited, FSB, offices and branches will be operated as BankUnited offices and branches.

BankUnited’s 86 offices will be open tomorrow during normal business hours. BankUnited, the successor institution, will be the largest independent bank in Florida, as was its predecessor (BankUnited, FSB). The management team is headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank.

Deposits will be insured by the FDIC. Customers can continue to use BankUnited, FSB’s checks, ATM cards and debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Bank United, FSB had assets of $12.80 billion and deposits of $8.6 billion as of May 2, 2009. The new BankUnited will assume $12.7 billion in assets and $8.3 billion in nonbrokered deposits. The FDIC and BankUnited entered into a loss-share transaction and will share in the losses on approximately $10.7 billion in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the covered assets by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers as they will maintain a banking relationship. BankUnited will recapitalize the institution with $900 million in new capital.

BankUnited will not assume the approximately $348 million in brokered deposits. The FDIC will pay the brokers directly. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-451-1093. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Friday from 8:00 a.m. to 8:00 p.m., EDT; on Saturday from 9:00 a.m. to 6:00 p.m. EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/bankunited.html.

The FDIC facilitated the transaction with John Kanas and a consortium of investors after BankUnited, FSB, was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC estimates that the cost to its Deposit Insurance Fund will be $4.9 billion. BankUnited’s acquisition of all the deposits and assets of BankUnited, FSB was the “least costly” resolution for the DIF compared to alternatives.

In addition to the management team led by John Kanas, ownership includes WL Ross & Co. LLC; Carlyle Investment Management L.L.C.; Blackstone Capital Partners V L.P.; Centerbridge Capital Partners, L.P. LeFrak Organization, Inc; The Wellcome Trust; Greenaap Investments Ltd.; and East Rock Endowment Fund.

Due to the interest of private equity firms in the purchase of depository institutions in receivership, the FDIC has been evaluating the appropriate terms for such investments. In the near future, the FDIC will provide generally applicable policy guidance on eligibility and other terms and conditions for such investments to guide potential investors.

BankUnited, FSB is the 34th FDIC-insured institution to fail in the nation this year, and the third in Florida. The last bank to be closed in the state was Riverside Bank of the Gulf Coast, Cape Coral on February 13, 2009.

I’ve added some business blogs and other business links on the right side of the page that I find interesting. If there are other ones you have found to be interesting and focus on the local, state or U.S. economy, let me know.

I was looking at the list of permit applications submitted to the City of Bellingham and found a few interesting things:

– There’s a tenant improvement permit for The Fireside Martini & Wine Bar, going in at Bakerview Square. Estimated improvement costs are $120,000.

– Permit application has been filed for a new Jack in the Box at 1020 W. Bakerview Road, on the corner of Bakerview and Northwest. Permits have been filed for this project several times in the past five years; I guess we’ll see if it gets going this time.

– There’s a permit application for a new teen dance hall 1320 Cornwall Ave., in the former Kendrick’s space. The company that filed the application is Club Remix Productions LLC.

A Bremerton Bank gets shut down by the state and FDIC… Here’s the state press release

FOR IMMEDIATE RELEASE
WA Department of financial Institutions TAKES POSSESSION OF WestSound Bank — Kitsap Bank will be new owner

Bremerton’s Westsound Bank will reopen Monday — with minimal disruption of service throughout the weekend — under new ownership with Kitsap Bank of Port Orchard

Olympia – The Washington Department of Financial Institutions (DFI) took possession of Bremerton’s Westsound Bank today, citing severe asset problems, significant losses and inadequate capital. Immediately upon taking possession, DFI appointed the Federal Deposit Insurance Corporation (FDIC) receiver. Then the FDIC immediately entered into a purchase and assumption agreement with Kitsap Bank of Port Orchard, Wash.

The corporate office and the eight branches of Westsound Bank will reopen on Monday, May 11 with minimal disruption in services. Online services may not be available until Monday.

“It is regrettable to have to take such actions, but DFI did so to ensure the soundness and stability of banking in Washington State,” DFI’s Director of Banks Brad Williamson said. “This unfortunate event is the result of very poor lending practices during the past several years. While the current management team worked diligently to overcome problems with the bank’s loan portfolio — a combination of the downturn in the local real estate market and the overall economic situation combined to make it impossible for the institution to continue.”

Williamson reminds depositors that most deposits in Washington state chartered banks are insured by the FDIC up to $250,000.

Kitsap Bank will assume all deposits of Westsound bank except brokered deposits, which the FDIC will pay. It is anticipated there will be no loss exposure to Westsound Bank depositors.

Throughout the weekend, depositors of Westsound Bank can access their funds by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2009, Westsound Bank’s financial statements listed total assets of $335 million and total deposits of $304 million.

The closure of Westsound Bank is the second in Washington State this year. DFI closed Bank of Clark County January 16. Prior to 2009, the most recent bank closure in Washington State was the 1993 closure of Emerald City Bank of Seattle.

Westsound Bank customers seeking more information about the possession should visit www.dfi.wa.gov/banks/westsound.htm or www.fdic.gov.

The FDIC recently published a borrower’s guide to an FDIC insured bank failure at www.fdic.gov/bank/individual/failed/borrowers/index.html.

For more information about deposit insurance for Washington banks and credit unions, visit www.dfi.wa.gov/consumers/deposits.htm. For details about FDIC coverage limits and requirements, visit www.fdic.gov or call toll-free 1.877.ASK.FDIC.

There’s plenty being said about the economy in blogs these days, so my next project  is to start providing links to ones that bring some good insight and data to the discussion. I’ll start putting some of my favorites on the side, but I wanted to check with you to find out what’s been a good read. Here are some examples I’ve found.

Locally, Ken Oplinger has started an interesting blog for the Bellingham/Whatcom Chamber of Commerce & Industry. It has some interesting insights not just about the local economy, but government’s role in it. Click here

One blog that has an interesting stuff (and graphs that should put a scare into many Americans) is called Calculated Risk. Click here

Former Bellingham Herald reporter Aubrey Cohen continues to put together an interesting blog for the Seattle P-I about that city’s real estate. Click here.

What other business-related blogs have you found interesting?

Instead of posting each bank failure individually, I’ll put them in one post each week. Here are the latest ones announced by the FDIC:

The Federal Deposit Insurance Corporation (FDIC) created a bridge bank to take over the operations of Silverton Bank, National Association, Atlanta, Georgia, after the bank was closed today by the Office of the Comptroller of the Currency (OCC). The OCC appointed the FDIC as receiver. The newly created bank is Silverton Bridge Bank, National Association.

Silverton Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.

Silverton Bank had approximately 1,400 client banks in 44 states, and operated six regional offices. It provided a variety of services for its clients, including credit card operations, clearing accounts, investments, consulting, purchasing loans, and selling loan participations. Since the FDIC created a new bank to take over the operations of Silverton Bank, there is not expected to be any meaningful impact on the bank’s clients.

The creation of the bridge bank allows the client banks to maintain their correspondent banking relationship with the least amount of disruption. The FDIC will operate Silverton Bridge Bank, N.A., to allow preexisting marketing efforts for the bank to continue.

At the time of its closing, Silverton Bank had approximately $4.1 billion in assets and $3.3 billion in deposits, all of which are expected to be within the FDIC’s insurance limits.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-523-0640. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Customers who would like more information about today’s transaction can also visit the FDIC’s Web site at: http://www.fdic.gov/bank/individual/failed/silverton.html.

TIB-The Independent BankersBank, Irving, Texas, was contracted by the FDIC to provide operational management of Silverton Bridge Bank, N.A.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $1.3 billion. Silverton Bank is the 30th bank to fail in the nation this year and the sixth in Georgia. The last FDIC-insured institution to fail in the state was American Southern Bank, Kennesaw, on April 24.

Number 31….

Citizens Community Bank, Ridgewood, New Jersey, was closed today by the New Jersey Department of Banking and Insurance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with North Jersey Community Bank, Englewood Cliffs, New Jersey, to assume all of the deposits of Citizens Community Bank.

The failed bank’s sole office will reopen on Monday as a branch of North Jersey Community Bank. Depositors of Citizens Community Bank will automatically become depositors of the assuming bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until North Jersey Community Bank can fully integrate the deposit records of Citizens Community Bank.

Over the weekend, depositors of Citizens Community Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2008, Citizens Community Bank had total assets of approximately $45.1 million and total deposits of $43.7 million. North Jersey Community Bank paid a premium of 0.67 percent to acquire all of the deposits of the failed bank.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-523-8503. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Customers who would like more information about today’s transaction can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/citizens.html.

In addition to acquiring the failed bank’s deposits, North Jersey Community Bank agreed to purchase approximately $11.5 million in assets. The FDIC will retain any remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $18.1 million. North Jersey Community Bank’s acquisition of the deposits of Citizens Community Bank was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives.

Citizens Community Bank is the 31st bank to fail in the nation this year and the first in New Jersey. The last FDIC-insured institution to fail in the state was Dollar Savings Bank, Newark, on February 14, 2004.

Number 32….

America West Bank, Layton, Utah, was closed today by the Utah Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Cache Valley Bank, Logan, Utah, to assume all of the deposits of America West.

The failed bank’s three offices will reopen on Monday as branches of Cache Valley Bank. Depositors of America West Bank will automatically become depositors of the assuming bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches.

Over the weekend, depositors of America West Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2008, America West Bank had total assets of approximately $299.4 million and total deposits of $284.1 million. Cache Valley Bank paid a discount of $352,000 to acquire all of the deposits of the failed bank.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-523-8209. The phone number will be operational this evening until 9:00 p.m., Mountain Daylight Time (MDT); on Saturday from 9:00 a.m. to 6:00 p.m., MDT; on Sunday from noon to 6:00 p.m., MDT; and thereafter from 8:00 a.m. to 8:00 p.m., MDT. Customers who would like more information about today’s transaction can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/americawest.html.

In addition to acquiring the failed bank’s deposits, Cache Valley Bank agreed to purchase approximately $10.9 million in assets, with a 30-day option to purchase loans at book value. The FDIC will retain any remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $119.4 million. Cache Valley Bank’s acquisition of all of the deposits of America West Bank was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives.

America West Bank is the 32nd bank to fail in the nation this year and the second in Utah. The last FDIC-insured institution to fail in the state was MagnetBank, Salt Lake City, on January 30, 2009.

I’ve buried much of the week with plenty of financial news reporting/data collecting, trying to get a good gauge on the local economy… It seems as though the first quarter was very difficult, mirroring what’s been happening nationally.

However, I am getting the “it seems a little busier” lately comments from business owners I’ve talked to. At least it seems there are more people walking around, enjoying the weather. Do you see an uptick?

I’m wondering if there is a bit more spending going on, whether it’s because of the nice weather or