Two bank closures bring year total to 151
(Updates with details on the numbers of banks closed
U.S. authorities shut down two banks on Friday, bringing the number of closures this year to 151, as smaller financial institutions continue to struggle with depressed real estate markets and a lack of job growth in the economy.
The Federal Deposit Insurance Corp has said it expects bank closures to peak this year after 140 closures in 2009. The bulk of this year's closures have been smaller institutions, each with less than a billion dollars in assets, as large banks have recovered more quickly from the 2007-2009 financial crisis.
The FDIC announced the following closures on Friday:
* Paramount Bank of Farmington Hills, Michigan. Had total assets of $252.7 million and $213.6 million in total deposits. Level One Bank will assume Paramount's deposits and branches and open as normal on Saturday. The Paramount failure will cost the FDIC's deposit insurance fund about $90.2 million. It was the fifth closure of an FDIC-insured bank in Michigan this year.
* Earthstar Bank of Southampton, Pennsylvania. Had assets of $112.6 million and $104.5 million in total deposits. Polonia Bank will take over the deposits and branches and will open as normal on Saturday. The Earthstar failure will cost the FDIC deposit insurance fund $22.9 mln. It was the second closure of an FDIC-insured bank in Pennsylvania this year.
(Reporting by David Lawder; editing by Gunna Dickson)
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