Feds shut Kansas bank

Federal regulators on Friday shut down Columbian Bank and Trust Co., a Kansas bank that was struggling with losses on soured real estate loans.

The Federal Deposit Insurance Corp. was appointed receiver of Columbian Bank of Topeka, which had $752 million in assets and $622 million in deposits as of June 30.

The FDIC did not give a reason for the closure, but Columbian reported $92 million in delinquent loans in the second quarter, citing a "volatile real estate market." The bank set aside $9.2 million for loan losses in the first quarter, up nearly 30 percent from the $7.1 million it set aside in the first quarter of 2007.

It was the ninth failure this year of an FDIC-insured bank.

That compares with three failures in all of 2007. More banks are in danger of failing this year, agency officials have said.