Six Banks Closed By Regulators

Posted by Orb Staff on February 01, 2010 No Comments
Categories : Residential Mortgage

Six Federal Deposit Insurance Corp. (FDIC)-insured institutions were closed by regulators Friday. The institutions include Bainbridge Island, Wash.-based American Marine Bank; Los Angeles-based First Regional Bank; Community Bank and Trust and First National Bank of Georgia, based in Cornelia and Carollton, Ga., respectively; Immokalee, Fla.-based Florida Community Bank; and Hallock, Minn.-based Marshall Bank NA.

The Washington Department of Financial Institutions closed American Marine Bank, whose deposits and assets were purchased by Tacoma, Wash.-based Columbia State Bank. At the end of September 2009, American Marine bank had approximately $373.2 million in total assets. The FDIC and Columbia State Bank entered into a loss-share agreement on $255.1 million of the failed bank's assets. The bank failure is expected to cost the FDIC's deposit insurance fund (DIF) about $58.9 million.

The California Department of Financial Institutions closed First Regional Bank, which had approximately $2.18 billion in total assets at the end of the third quarter of 2009. Raleigh, N.C.-based First-Citizens Bank & Trust Co. has agreed to purchase $2.17 billion of the assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and First-Citizens Bank & Trust Co. entered into a loss-share transaction on $2 billion of First Regional Bank's assets. The estimated impact to the DIF is $825.5 million.

Community Bank and Trust was closed by the Georgia Department of Banking and Finance, and its assets, which totaled about $1.21 billion at the end of September 2009, have been acquired by SCBT NA of Orangeburg, S.C. The FDIC and SCBT NA entered into a loss-share transaction on $827.7 million of Community Bank and Trust's assets, and the estimated cost to the DIF is $354.5 million.

Community & Southern Bank, based in Carrollton, Ga., has purchased essentially all of the assets belonging to First National Bank of Georgia, which was closed by the Office of the Comptroller of the Currency (OCC). As of the end of September 2009, First National Bank of Georgia had approximately $832.6 million in total assets. Community & Southern Bank and the FDIC entered into a loss-share agreement on $607.4 million of the failed bank's assets. The cost to the DIF is estimated to be $260.4 million.

Florida Community Bank was closed by the Florida Office of Financial Regulation. The bank's assets were estimated to be $875.5 million at the end of September 2009. Miami-based Premier American Bank NA has agreed to purchase approximately $499.1 million of the assets, and the FDIC will retain the remaining assets for later disposition. The FDIC and Premier American Bank entered into a loss-share transaction on $305.4 million of Florida Community Bank's assets. The FDIC estimates that the cost to the DIF will be $352.6 million.

Marshall Bank NA was closed by the OCC, and its assets, estimated to be $59.9 million at the end of September 2009, have been purchased by Cavalier, N.D.-based United Valley Bank. The FDIC and United Valley Bank entered into a loss-share transaction on $23.9 million of Marshall Bank's assets, and the estimated cost to the DIF is $4.1 million.

SOURCE: Federal Deposit Insurance Corp.

Register here to receive our Latest Headlines email newsletter




Leave a Comment