Three Midwest Banks Fail

Federal regulators shut down three banks last Friday, brining the total number of U.S. bank failures this year to 132. Premier Bank based in Jefferson City, Mo., WestBridge Bank and Trust Co. based in Chesterfield, Mo., and Security Savings Bank based in Olathe, Kan., were shuttered by the Federal Deposit Insurance Corp. (FDIC). All three banks will be bought by larger banks in the area, and all customer deposits are deemed to be safe. The FDIC said that the three bank failures would cost the insurance fund more than $500 million in total. The 132 bank failures this year is on pace to break last year’s total number of 140, according to the FDIC. Community bank failures are mainly caused by weaknesses in the commercial property market, including defaults in funding for retail properties and strip malls, according to analysts.