Banks Seized by Regulators in Nebraska, Mississippi, Illinois

June 5 (Bloomberg) -- Three banks with total deposits of almost $2.3 billion were seized by regulators amid losses stemming from soured real-estate loans, raising to 81 the number of U.S. lenders that have collapsed this year.

Banks in Nebraska, Mississippi and Illinois were shut yesterday, according to statements on the Federal Deposit Insurance Corp.’s website. The failures drained $313.6 million from the FDIC’s deposit-insurance fund.

Regulators are closing banks at the fastest pace since the 1990s amid loan losses tied to real estate. The FDIC’s list of “problem” lenders is the longest since 1992. FDIC Chairman Sheila Bair said the confidential list rose to 775 banks with $431 billion in assets in the first quarter. That’s an increase from 702 banks with $402.8 billion in assets at the end of the fourth quarter.

The biggest bank seized yesterday was TierOne Bank in Lincoln, Nebraska, with $2.2 billion in deposits and $2.8 billion in assets. Great Western Bank of Sioux Falls, South Dakota, acquired the bank’s operations and its 69 branches. Great Western agreed to pay the FDIC a premium of 1.5 percent for TierOne’s deposits. The agency will share in losses on $1.9 billion of assets.

The collapse of smaller lenders continued even as U.S. banks posted $18 billion in profits during the first quarter, reflecting some signs of recovery in the industry. Banks had their highest profits in two years in the three-month period through March 31 after a $1.3 billion loss in the fourth quarter, the FDIC said last month.

Mississippi, Illinois

First National Bank of Rosedale, Mississippi, was closed by the Office of the Comptroller of the Currency and the FDIC was named receiver. It’s the first FDIC-insured bank in the state to fail since September 2000, the agency said.

Jefferson Bank of Fayette, Mississippi, acquired the $63.5 million of deposits and $60.4 million in assets of First National, as well as its lone branch. The FDIC will share in losses on $43.5 million of the assets.

Arcola Homestead Savings Bank of Arcola, Illinois, was shut by a state regulator. The FDIC announced it was unable to find a buyer and will pay off insured deposits. Arcola had $17 million in assets and $18.1 million in deposits.

Twelve banks in Illinois have failed this year, the FDIC said. TierOne is the first Nebraska bank to be shut since February 2009.

--With assistance from Phil Mattingly in Washington. Editors: Elizabeth Wollman, Sylvia Wier

To contact the reporter on this story: Dan Reichl in San Francisco at dreichl@bloomberg.net.