Five Community Banks Shut Down

Posted by Orb Staff on April 30, 2012 No Comments
Categories : Residential Mortgage

11435_closed Five Community Banks Shut Down The Federal Deposit Insurance Corp. (FDIC) has announced the closing of five community banks.

HarVest Bank of Maryland, based in Gaithersburg, Md., was closed by the Maryland Commissioner of Financial Regulation. The FDIC entered into a purchase and assumption agreement with Sonabank, based in McLean, Va., to assume all of the deposits of HarVest Bank of Maryland. As of Dec. 31, 2011, HarVest Bank of Maryland had approximately $164.3 million in total assets and $145.5 million in total deposits.

Maple Grove, Minn.-based InterBank FSB was closed by the Office of the Comptroller of the Currency (OCC). The FDIC entered into a purchase and assumption agreement with Great Southern Bank, based in Reeds Spring, Mo., to assume all of the deposits of InterBank. As of Dec. 31, 2011, InterBank had approximately $481.6 million in total assets and $473 million in total deposits.

The FDIC and Great Southern Bank also entered into a loss-share transaction on $413 million of InterBank's assets. Great Southern Bank will share in the losses on the asset pools covered under the loss-share agreement.

Plantation Federal Bank in Pawleys Island, S.C., was closed by the OCC. The FDIC entered into a purchase and assumption agreement with First Federal Bank of Charleston, S.C., to assume all of the deposits of Plantation Federal Bank. As of Dec. 31, 2011, Plantation Federal Bank had approximately $486.4 million in total assets and $440.5 million in total deposits.

Palm Desert National Bank in Palm Desert, Calif., was also by the OCC. The FDIC entered into a purchase and assumption agreement with Pacific Premier Bank in Costa Mesa, Calif., to assume all of the deposits of Palm Desert National Bank. As of Dec. 31, 2011, Palm Desert National Bank had approximately $125.8 million in total assets and $122.8 million in total deposits.

Bank of the Eastern Shore in Cambridge, Md., was closed by the Maryland Commissioner of Financial Regulation, but the FDIC was unable to get another bank to purchase its assets. To protect the bank's depositors, the FDIC created the Deposit Insurance National Bank of Eastern Shore (DINB), which will remain open until May 25, to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the receiver immediately transferred to the DINB all insured deposits of Bank of the Eastern Shore, except for brokered deposits, certificates of deposits and individual retirement accounts. As of Dec. 31, 2011, Bank of the Eastern Shore had $166.7 million in total assets and $154.5 million in total deposits.

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