Nine More Banks Fail

On Friday, nine banks were closed by federal and state bank regulators, the most banks closed in a single day since the banking crisis hit. U.S. Bancorp (NYSE: USB) entered into an agreement with the FDIC to assume all of the deposits and essentially all of the assets of the nine failed banks.

The banks had combined assets of $19.4 billion and deposits of $15.4 billion. The nine banks had 153 offices, which reopened as branches of U.S. Bank.

The nine banks involved in the transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas.

The FDIC estimates that the cost of the nine banks to the Deposit Insurance Fund will be a combined $2.5 billion.

The failure of the nine banks brings the nation's total number this year to 115.