FDIC shutters small bank in Arizona

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Associated Press

Posted on May 14, 2013 at 10:01 PM

Updated Wednesday, May 15 at 12:01 AM

WASHINGTON (AP) — Regulators say they have closed a small bank in Arizona, bringing the number of U.S. bank failures to 13 this year.

The Federal Deposit Insurance Corp. on Tuesday seized Central Arizona Bank, based in Scottsdale, Ariz.

The lender, which operated a single branch, had roughly $31.6 million in assets and $30.8 million in deposits as of March 31.

Western State Bank, based in Devils Lake, N.D., agreed to assume all of the failed bank's deposits and to buy essentially all of its assets.

The failure of Central Arizona Bank is expected to cost the deposit insurance fund $8.6 million.

The lender is the second FDIC-insured institution in Arizona to fail this year.

U.S. bank closures have been declining since peaking in 2010 after the 2008 financial crisis.

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