Two Banks Fail; 2011 Tally at 87

Two banks failed Friday evening, bringing this year's total number of bank failures to 87.

Both failed banks were previously included in TheStreet's preliminary third-quarter Bank Watch List of undercapitalized institutions, based on early regulatory data provided by SNL Financial.Mid City BankThe Nebraska Department of Banking and Finance closed Mid City Bank of Omaha, which had total assets of $106.1 million and $105.5 million in deposits when it failed. The Federal Deposit Insurance Corp. was appointed receiver and sold the failed institution to Purdum State Bank of Purdum, Neb.On Saturday morning Purdum State Bank will change its name to Premier Bank, and the failed bank's five branches will reopen during normal business hours under the new name.The FDIC estimated that the cost of Mid City Bank's failure to the deposit insurance fund would be $12.7 million.SunFirst BankThe Utah Department of Financial Institutions took over SunFirst Bank of Saint George, which had total assets of $169.1 million and $177.3 million in deposits.The FDIC was appointed receiver and sold all but $15 million of the failed bank's deposits to Cache Valley Bank of Logan, Utah. The agency said it was retaining a portion of SunFirst Bank's deposits that were frozen before the bank failed and "may be subject to external litigation."Cache Valley Bank also purchased $177.3 million of the failed bank's assets, with the FDIC agreeing to cover 80% of losses on $128.9 million of the acquired assets. The FDIC retained the remaining assets for later disposition. The failed bank's three offices were set to reopen during normal business hours as branches of Cache Valley Bank.SunFirst was among the banks ensnared in what the Justice Department called a "poker Ponzi scheme" involving Full Tilt Poker and several other online gaming sites, with John Campos -- a former vice chairman of SunFirst -- being charged by the Justice Department with money laundering and setting up accounts that illegally processed payments for Full Tilt Poker and Poker Stars, according to several reports.Large banks that the Justice Department said were unwittingly involved in the accusations against the online gaming companies included Bank of America (BAC), Citigroup (C), JPMorgan Chase and Wells Fargo (WFC). Thorough Bank Failure CoverageGeorgia leads all states with 22 bank failures this year, followed by Florida, with 12 failures, and Illinois, with nine bank closures. There was one bank failure last Friday. All previous bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2011 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.RELATED STORIES: John McCain Calls for FHFA Head's Head >Bank of America Sinks 6%: Financial Loser (Update 1) >Bank of America Faces $45B Capital Shortfall: Analyst >Bank of New York Execs Seek Punishment Pass: Report >146 Banks Desperate for a Bailout >-- To contact the writer, click here: Philip van Doorn.To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn. >To order reprints of this article, click here: Reprints