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Two weeks after the Federal Deposit Insurance Corp seized IndyMac Bancorp Inc (IDMC.PK), the Office of the Comptroller of the Currency said it closed First National Bank of Nevada and First Heritage Bank NA of California.

First National, characterized as undercapitalized, had total assets of $3.4 billion and $3 billion in deposits. First Heritage, described as critically undercapitalized, had assets of $254 the masses and $233 million in deposits, regulators said.

The FDIC said the cost of the transactions to its security against loss fund is estimated to be $862 million, adding that the brace failed banks show just 0.3 percent of $13.4 trillion in total industry assets at about 8,500 FDIC-insured institutions.

The FDIC said the 28 offices of the two banks will reopen on Monday as Mutual of Omaha Bank. Over the weekend, customers can access their money by means of writing checks, using automatic teller machines or debit cards.

Mutual of Omaha Bank currently has more than $750 a thousand thousand in assets and operates 14 retail branches in Nebraska and Colorado with commercial lending offices in Dallas and Des Moines, Iowa, the FDIC said.

It is a auxiliary of Mutual of Omaha, a 99-year-old insurance and pecuniary services company with more than $19 billion in total possessions.

Top banking regulators have warned of more insolvencies this year and next, but for at once carry into effect not expect failures the size of IndyMac, which had $32 billion in assets and $19 billion in totality deposits at the cessation of March.

IndyMac, the third largest U.S. bank failure, was regulated by the Office of Thrift Supervision and is expected to deplete the FDIC's insurance fund by the agency of between $4 billion and $8 billion.

IndyMac is inmost nature run by the FDIC while the agency looks to sell its assets.

The FDIC oversees an industry-funded make an exception of of on the point $53 billion used to insure up to $100,000 per deposit and $250,000 per individual retirement relation at insured banks.

The agency furthermore has a running harmonize of problem banks that its examiners closely monitor. At the end of the first deal out, 90 institutions were on the list that is expected to be updated next month.

First Heritage of Newport Beach, California, had three branches with customers comprised mostly of corporations, while First National of Reno, Nevada, had 25 branches. Both were owned by First National Bank Holding Co of Scottsdale, Arizona.

In addition to assuming all the deposits, Mutual of Omaha Bank will purchase about $200 the masses of possessions and pay the FDIC a 4.41 premium to assume the deposits.

None of the entities are publicly traded.

(Reporting by John Poirier; Editing by Tim Dobbyn)


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