FDIC Fund To Take $363.2M Hit On Three Failures

Posted by Orb Staff on June 22, 2009 No Comments
Categories : Residential Mortgage

deral Deposit Insurance Corp. (FDIC) was appointed as receiver for three failed banks last week, bringing the total number of FDIC-insured institution failures to 40 for the year. Southern Community Bank in Fayetteville, Ga.; Cooperative Bank in Wilmington, N.C.; and First National Bank of Anthony in Anthony, Kan.; were all closed by their respective regulators and turned over to the FDIC. The deposits of Southern Community Bank, which totaled about $307 million at the end of May, will be assumed by United Community Bank of Blairsville, Ga. United Community Bank paid a premium of 1% to acquire all of the deposits and agreed to purchase about $364 million of assets. United Community Bank entered into a loss-share transaction with the FDIC on approximately $253 million of Southern Community Bank's assets. First Bank of Troy, N.C., will assume all of Cooperative Bank's deposits, except about $57 million in brokered deposits. As of May 31, Cooperative Bank had total assets of $970 million and total deposits of approximately $774 million. In addition to assuming all of the deposits of the failed bank, First Bank agreed to purchase approximately $942 million of assets. The FDIC will retain the remaining assets for later disposition. The FDIC and First Bank entered into a loss-share transaction on approximately $852 million of Cooperative Bank's assets. The FDIC also entered into a purchase and assumption agreement with Bank of Kansas of South Hutchinson, Kan., to assume all of the deposits of First National Bank of Anthony. At the end of March, First National Bank of Anthony had total assets of $156.9 million and total deposits of approximately $142.5 million. Bank of Kansas paid a premium of 0.5% to acquire all of the deposits of the failed bank. Bank of Kansas also agreed to purchase approximately $156.7 million of assets. The loss-share transaction is on approximately $130.5 million of the failed bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $114 million for Southern Community Bank, $217 million for Cooperative Bank and $32.2 million for First National Bank of Anthony. SOURC

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