On Friday, the Utah Department of Financial Institutions closed Barnes Banking Company, headquartered in Kaysville, Utah, and the FDIC was named receiver. To protect the depositors of the failed bank, the FDIC created Deposit Insurance National Bank of Kaysville (DINB), which will remain open until February 12, 2010, to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the FDIC transferred to DINB all insured deposits of Barnes Banking Company, except for brokered deposits, certificates of deposits and individual retirement accounts. The FDIC also transferred to DINB all secured deposits by public entities.

As of September 30, 2009, Barnes Banking Company had approximately $827.8 million in total assets and $786.5 million in total deposits. The FDIC as receiver will retain all the assets from Barnes Banking Company for later disposition.

The cost to the FDIC's Deposit Insurance Fund is estimated to be $271.3 million. Barnes Banking Company is the fourth bank to fail this year and the first in Utah since America West Bank in May 2009.