Five Community Banks Are Shut Down

Posted by Orb Staff on July 23, 2012 No Comments
Categories : Residential Mortgage

12035_closed Five Community Banks Are Shut Down Five community banks were closed late last week, with the Federal Deposit Insurance Corp. (FDIC) being named as their receiver.

The Georgia Department of Banking and Finance closed two banks – Woodstock, Ga.-based First Cherokee State Bank and Buford, Ga.-based Georgia Trust Bank. The FDIC entered into a purchase and assumption agreement with Atlanta-based Community & Southern Bank to assume all of the deposits of the two banks. As of March 32, First Cherokee State Bank had approximately $222.7 million in total assets and $193.3 million in total deposits and Georgia Trust Bank had approximately $119.8 million in total assets and $117.4 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 0.50% to assume all of the deposits of the banks.

Second Federal Savings and Loan Association of Chicago was closed by the Office of the Comptroller of the Currency. The FDIC entered into a purchase and assumption agreement with Hinsdale Bank & Trust Co., based in Hinsdale, Ill., to assume all of the deposits of the failed financial institution. As of March 31, Second Federal Savings and Loan Association of Chicago had approximately $199.1 million in total assets and $175.9 million in total deposits. Hinsdale Bank & Trust will pay the FDIC a premium of $100,000 to assume all of the deposits of the failed bank.

Leawood, Kan.-based Heartland Bank was closed by the Kansas Office of the State Bank Commissioner. The FDIC entered into a purchase and assumption agreement with Summit, Mo.-based Metcalf Bank to assume all of the deposits of Heartland Bank. As of March 31, Heartland Bank had approximately $110.0 million in total assets and $102.6 million in total deposits. Metcalf Bank will pay the FDIC a premium of 1.11% to assume all of the deposits of Heartland Bank.

The Royal Palm Bank of Florida, based in Naples, Fla., was closed by the Florida Office of Financial Regulation. The FDIC entered into a purchase and assumption agreement with First National Bank of the Gulf Coast, also based in Naples, to assume all of the deposits of The Royal Palm Bank of Florida. As of March 31, The Royal Palm Bank of Florida had approximately $87.0 million in total assets and $85.1 million in total deposits.

As of this week, 38 banks have failed during 2012.

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