The FDIC said it entered into a purchase and assumption agreement with U.S. Bank, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks. The nine banks were closed on Friday, October 30 by federal and state bank regulators, which appointed the FDIC as receiver.

As of September 30, 2009, the nine banks had 153 offices and combined assets of $19.4 billion and deposits of $15.4 billion.

The FDIC and U.S. Bank entered into a loss-share transaction on approximately $14.4 billion of the combined purchased assets of $18.2 billion. U.S. Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

The banks involved in the transaction are: Bank USA, Phoenix, AZ; California National Bank, Los Angeles, CA; San Diego National Bank, San Diego, CA; Pacific National Bank, San Francisco, CA; Park National Bank, Chicago, IL; Community Bank of Lemont, Lemont, IL; North Houston Bank, Houston, TX; Madisonville State Bank, Madisonville, TX; and Citizens National Bank, Teague, TX.

The FDIC estimates that the cost of the nine banks to the Deposit Insurance Fund (DIF) will be a combined $2.5 billion. U.S. Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. The failure of the nine banks brings the nation's total number this year to 115.