Federal and state regulators have closed Kentucky-based Union Bank, FSB, and Indiana-based Irwin Union Bank and Trust, the subsidiary banking institutions of Irwin Financial. The regulators named the Federal Deposit Insurance Corporation (FDIC) as the receiver for the banks.
Reportedly, to protect depositors, the FDIC has entered into a purchase and assumption agreement with Ohio-based First Financial Bank, National Association, to assume all of the deposits of the two banks.
The FDIC has said that Indiana-based Irwin Union Bank and Trust, was closed by the Indiana Department of Financial Institutions. Kentucky-based Irwin Union Bank, FSB was closed by the Office of Thrift Supervision.
The FDIC has added that Irwin Union B&T and Irwin Union Bank, FSB, had 27 locations between them and will reopen as branches of First Financial Bank. Depositors of the failed institutions will automatically become depositors of First Financial Bank. Moreover, deposits will continue to be insured by the FDIC. All customers can continue to use their existing branches until First Financial Bank can fully integrate the deposit records of the two institutions.
Additionally, the FDIC and First Financial Bank entered into a loss-share transaction on approximately $2.5 billion of the assets of Irwin Union B&T and Irwin Union Bank, FSB. First Financial Bank will share in the losses on the asset pools covered under the loss-share agreement.
