Today, as receiver of two failed banks: Union Bank, N.A., and Community Bank of Arizona, the FDIC entered into purchase and assumption agreements with MidFirst Bank, headquartered in Oklahoma City, Oklahoma, to assume the deposits (excluding the brokered deposits from Union Bank, N.A.) of both institutions. These failures bring the total number of failed banks in the nation this year to 76.

The Arizona Department of Financial Institutions closed Community Bank of Arizona, headquartered in Phoenix, Arizona. As of June 30, 2009, Community Bank of Arizona had total assets of $158.5 million and total deposits of approximately $143.8 million. MidFirst Bank also agreed to purchase approximately $125.5 million of the failed bank's assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and MidFirst entered into a loss-share transaction on approximately $55.1 million of Community Bank of Arizona's assets. The FDIC estimates the costs to the Deposit Insurance Fund will be $25.5 million.

The OCC closed Union National Bank, N.A., headquartered in Gilbert, Arizona. As of June 12, 2009, Union Bank, N.A., had total assets of $124 million and total deposits of approximately $112 million. MidFirst Bank also agreed to purchase approximately $11 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. MidFirst Bank did not assume the approximately $88 million in brokered deposits held by Union Bank, N.A. The FDIC will pay the brokers directly for the amount of their funds. The FDIC estimates that the cost to the Deposit Insurance Fund will be $61 million.