Regulators closed two subsidiaries of Irwin Financial Corporation in Kentucky and Indiana, taking the toll of the federally insured failed banks to 94 this year.

The Federal Deposit Insurance Corp. was appointed receiver of the Louisville, Kentucky-based Irwin Union Bank FSB and Columbus-based Irwin Union Bank and Trust Co.

As of August 31, Irwin Union Bank FSB possessed assets worth $493 million and deposits worth $441 million, while Irwin Union Bank and Trust Co. owned assets worth $2.7 billion and deposits worth $2.1 billion.

The Federal Deposit Insurance Corp. said that First Financial Bank in Hamilton, Ohio, had agreed to assume both banks’ deposits.

First Financial Bank will also buy essentially all of the two banks’ assets.

The FDIC said the failure of the two banks will cost its fund around $850 million. 

The 27 branches of the two banks will reopen as the branches of the First Financial Bank.

In the late trading, shares in Irwin Financial dropped to 22 cents per share, losing over 50 per cent.