FDIC Announces Two Bank Failures

Posted by Orb Staff on February 27, 2012 No Comments
Categories : Residential Mortgage

10999_closed FDIC Announces Two Bank Failures The Federal Deposit Insurance Corp. (FDIC) has approved the payout of the insured deposits of Home Savings of America, based in Little Falls, Minn. The bank was closed on Feb. 24 by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver.

The FDIC was unable to find another financial institution to take over the banking operations of Home Savings of America. The FDIC will contact the depositors of the closed institution and mail them checks for the amount of their insured money.

As of Dec. 31, 2011, Home Savings of America had $434.1 million in total assets and $432.2 million in total deposits. The amount of uninsured deposits will be determined once the FDIC obtains additional information from those customers. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $38.8 million.

Separately, the FDIC entered into a purchase and assumption agreement with Ameris Bank of Moultrie, Ga., to assume all of the deposits of Central Bank of Georgia, based in Ellaville, Ga. As of Dec. 31, 2011, Central Bank of Georgia had approximately $278.9 million in total assets and $266.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, Ameris Bank agreed to purchase essentially all of the assets.

Home Savings of America and Ameris Bank raise the number of failed banks in 2012 to 11.

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