Bank Closings Rise To 130

Posted by Orb Staff on December 07, 2009 No Comments
Categories : Residential Mortgage

Regulators closed six financial institutions Friday, bringing the number of bank closings this year to 130.

Cleveland-based AmTrust Bank was closed by the Office of Thrift Supervision. Westbury, N.Y.-based New York Community Bank agreed to buy about $9 billion of AmTrust's $12 billion of assets, entering into a loss-share transaction with the Federal Deposit Insurance Corp. (FDIC) on about $6 billion. The failure will cost the FDIC's Deposit Insurance Fund (DIF) about $2 billion.

Three Georgia banks were closed, including Atlanta-based Buckhead Community Bank, Reidsville-based Tattnall Bank and Norcross-based First Security National Bank. Buckhead Community Bank's failure is estimated to cost the DIF $241.4 million. Macon, Ga.-based State Bank and Trust Co. entered into a loss-share agreement on $692 million of the bank's assets, as well as on $82.4 million of First Security National bank's assets. Albany, Ga.-based HeritageBank of the South purchased $48.5 million of Tattnall Bank's assets.

Greater Atlantic Bank
in Reston, Va., was also closed, and its assets were assumed by Sonabank in Mclean, Va. Sonabank entered into a loss-share agreement with the FDIC on approximately $145 million of Greater Atlantic Bank's assets.

Benchmark Bank in Aurora, Illinois, was closed and its assets were purchased by Chicago-based MB Financial Bank NA. Mb Financial Bank's loss-share agreement provides coverage on approxiamtely $139 million.

SOURCE: FDIC

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