The Federal Deposit Insurance Corp. or FDIC announced Friday the shuttering of four banks, two in Georgia, and one bank each in Florida and Colorado, taking the count of U.S. bank closures in 2011 to 84, after the 157 bank closures in 2010.
The four banks were closed on Friday by the regulators, with the assets of the failed banks beings assumed by other banks in an FDIC assisted transaction. The FDIC estimates that the cost to the Deposit Insurance Fund or DIF, by the four bank closures will be a total of $438.1 million.
Boca Raton, Florida-based 1st United Bank (FUBC) assumed the banking operations, including all the deposits, of Old Harbor Bank (OHBK.OB) from FDIC, and Atlanta, Georgia-based Fidelity Bank (LION) assumed from the FDIC all of the deposits of Decatur First Bank in Georgia.
Meanwhile, Macon, Georgia-based State Bank and Trust Co. (STBZ) assumed from the FDIC all of the deposits of Community Capital Bank, and Kansas City, Missouri-based Bank Midwest, National Association, assumed all of the deposits of Community Banks in Colorado from FDIC.
Clearwater, Florida-based Old Harbor Bank was closed today by the Florida Office of Financial Regulation. As of June 30, 2011, Old Harbor Bank had about $215.9 million in total assets and $217.8 million in total deposits.
1st United Bank agreed to purchase essentially all of Old Harbor Bank's assets, while assuming all of the deposits of the failed bank, at a discount of $8.5 million. The FDIC and 1st United Bank also entered into a loss-share transaction on $155.6 million of Old Harbor Bank's assets.
Further, Decatur, Georgia-based Decatur First Bank and Jonesboro, Georgia-based Community Capital Bank were closed today by the Georgia Department of Banking and Finance. As of June 30, 2011, Decatur First Bank had about $191.5 million in total assets and $179.2 million in total deposits and Community Capital Bank had about $181.2 million in total assets and $166.2 million in total deposits.
Fidelity Bank agreed to purchase essentially all of Decatur First Bank's assets, while assuming all of the deposits, and entered into a loss-share transaction with the FDIC on $111.5 million of the assets.
State Bank and Trust agreed to purchase essentially all of Community Capital Bank's assets, while assuming all of the deposits, and entered into a loss-share transaction on $141.3 million of the assets with the FDIC.
Meanwhile, Bank Midwest, National Association agreed to purchase essentially all of Community Banks of Colorado's assets, while assuming all of the deposits, and entered into a loss-share transaction on $7142.2 million of the assets with the FDIC. As of June 30, 2011, Community Banks had about $1.38 billion in total assets and $1.33 billion in total deposits.
The FDIC noted that customers of all the failed banks can this evening and over the weekend access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed, and loan customers should continue to make their payments as usual.
Customers of the failed banks are protected, by the FDIC, which has insured bank deposits since the Great Depression, currently covering customer accounts up to $250,000. The FDIC insures deposits at the nation's 7,513 banks and savings associations.
An average of 13 banks have failed per month in 2010, with bank closures for 2011 currently averaging only just more than 8 per month. The 157 bank closures in 2010 was up from 140 in 2009, and more than six times of the 25 bank failures in 2008 of. Only three banks failed in 2007. The highest and all time record for bank closures was in 1989 when 534 banks closed, followed by 181 bank failures in 1992.
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