On Friday, bank regulators shut down two small banks, the first U.S. banks to fail this year but the latest in an upsurge that began last year as the struggling economy and falling home prices took their toll on financial institutions.

Bank of Clark County, Vancouver, Washington, with approximately $446.5 million in assets and approximately $366.5 million in deposits was closed. Umpqua Bank, Roseburg, Oregon has agreed to assume the non-brokered insured deposits. (PR-6-2009).

National Bank of Commerce, Berkeley, Illinois, with approximately $430.9 million in total assets and $402.1 million in total deposits, was closed. In addition to assuming all of the failed bank’s deposits, Republic Bank of Chicago, Oak Brook, Illinois agreed to pay a discount of $44.9 million, and will purchase approximately $366.6 million of assets. The FDIC will retain the remaining assets for later disposition. (PR-5-2009).

 The trend of banks seized by officials is on the rise: “In 2008, 25 banks were seized by officials, up from just 3 in 2007“.

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