The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine more failed banks.

The nine banks were closed late Friday night by federal and state bank regulators, which appointed

the FDIC as receiver.

The nine banks involved in today's transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific

National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas. As of September 30, 2009, the banks had  combined assets of $19.4 billion and deposits of $15.4 billion.

The nine banks had 153 offices, which will reopen as branches of U.S. Bank beginning Saturday during their normal business hours. Depositors of the nine banks will automatically become depositors of U.S. Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers

to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until U.S. Bank can fully integrate the deposit records of the nine failed banks.

Over the weekend, depositors of the nine banks can access their money by writing checks or using ATM or debit cards. Checks drawn on the banks will continue to be processed. Loan customers should continue to make their payments as usual.

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.

Last Friday night, Racine-based Bank of Elmwood became the first Wisconsin bank closed by regulators since the recession began. To date, federal officials have closed 106 banks around the country.

The Wisconsin Department of Financial Institutions ordered the bank to close and asked FDIC to act as receiver. Oak Creek-based Tri City National Bank purchased all of Bank of Elmwood's deposits and most of its assets. The Wisconsin DFI closed Bank of Elmwood because its level of non-performing loans could not be overcome, said Michael Mach, administrator of the division of banking with the state agency.

The FDIC has now closed 115 banks across the country.