Two More Bank Failured: Security Savings Bank; Heritage Community Bank

There were two more bank failures last Friday - Security Savings Bank and Heritage Community Bank. These bank closings are the 15th and 16th bank failures for the year. As has been the case with other bank failures this year, the FDIC has faciliated the transfer of deposits to another bank. That means that all regular deposits, even those above FDIC limits are being made whole. The only exception are brokered deposits. These will be held by the FDIC and its probably that brokered deposits over FDIC limits will be lost. This also seems to be an emerging pattern. If you have money brokered deposits you'd be wise to make sure the amounts are under FDIC limits for each institution in which the funds are invested.

Details of each bank failure are:

Security Savings Bank, Henderson, NV

• Assets: $283.3 million
• Deposits: $175.2 million
• Purchasing Bank: Bank of Nevada, Las Vegas
• Cost to FDIC: $59.1 million
• Customer Access: Over the weekend, depositors of Security Savings 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.

Heritage Community Bank, Glenwood, IL

• Assets: $232 million
• Deposits: $218.6 million
• Purchasing Bank: MB Financial Bank, N.A., Chicago, Illinois
• Cost to FDIC: $41.6 million
• Customer Access: Over the weekend, depositors of Heritage 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 we've seen with ever bank closing this year, the closing happens on a Friday, and customers retain access to funds over the weekend via ATMs and checks. The following the Monday the transitiont to the new owners have been made and funds can be withdrawn normally. FDIC insurance continues to operate smoothly.