Two Bank Failures Bring 2010 Total to 151

Posted on Monday, December 13, 2010

Regulators on Friday shut down small banks in Michigan and Pennsylvania, raising the number of banks that have failed this year to 151. The Federal Deposit Insurance Corporation took over the Paramount Bank, based in Farmington Hills, Mich., with $252.7 million in assets and $213.6 million in deposits. The F.D.I.C. also shut down Earthstar Bank, based in Southampton, Pa., with $112.6 million in assets and $104.5 million in deposits. Level One Bank, also based in Farmington Hills, will assume the assets and deposits of Paramount Bank; Polonia Bank, based in Huntingdon Valley, Pa., is assuming all the deposits and $77.1 million of Earthstar Bank’s loans and other assets. The failure of Paramount Bank is expected to cost the deposit insurance fund $90.2 million; that of Earthstar Bank is expected to cost $22.9 million. By THE ASSOCIATED PRESS

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