Bank Failures

How many more are going to close now that Obama is in charge.
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Friday, June 19, 2009 FOXBusiness:  Joanna Ossinger

Three More Banks Fail; 40 Closures So Far This Year

Three banks were closed on Friday — one in Georgia, one in North Carolina and one in Kansas — bringing the total to 40 bank failures in the U.S. so far in 2009.

Southern Community Bank of Fayetteville, Ga., was closed down, and all its deposits will be assumed by United Community Bank of Blairsville, Ga. All five offices of SCB will become branches of UCB, and depositors of SCB will automatically become depositors at UCB.

As of May 29, SCB had total assets of $377 million and total deposits of $307 million.

United Community Bank paid a premium of 1% to acquire all of the deposits of the failed bank, the Federal Deposit Insurance Corp. said.

United Community Bank also agreed to purchase approximately $364 million of SCB’s assets; it entered into a loss-share transaction with the FDIC on approximately $253 million of SCB’s assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the deposit-insurance fund from Southern Community Bank’s failure will be $114 million.

Southern Community Bank customers who have questions about today’s transaction can call the FDIC toll-free at 1-866-308-4470, or can visit the FDIC’s Web site on the closure.

Also Friday, Cooperative Bank of Wilmington, N.C., was closed down, and First Bank of Troy, N.C., agreed to assume all of Cooperative Bank’s deposits except those from brokers.

As of May 31, Cooperative Bank had total assets of $970 million and total deposits of $774 million. In addition to assuming all of the deposits of the failed bank, First Bank agreed to purchase approximately $942 million of assets; it entered into a loss-share transaction with the FDIC on approximately $852 million of Cooperative Bank’s assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to its deposit-insurance fund from Cooperative Bank’s closure will be $217 million.

Cooperative Bank customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-930-5169, or can visit the FDIC’s Web site on the closure.

And, First National Bank of Anthony in Anthony, Kan., failed; Bank of Kansas in South Hutchinson, Kan., agreed to assume all its deposits.

Bank of Kansas will take over all six offices of First National Bank of Anthony.

As of March 31, First National Bank of Anthony had total assets of $156.9 million and total deposits of approximately $142.5 million; Bank of Kansas entered into a loss-share transaction with the FDIC on approximately $130.5 million of First National Bank of Anthony’s assets. In addition to assuming all of the deposits of the failed bank, Bank of Kansas agreed to purchase approximately $156.7 million of assets.

Bank of Kansas paid a premium of 0.5% to acquire all of the deposits of the failed bank. The FDIC will retain the remaining assets for later disposition.

The FDIC estimated that the cost to its deposit-insurance fund will be $32.2 million.

First National Bank of Anthony customers who have questions about today’s transaction can call the FDIC toll-free at 1-877-367-2719, or can visit the FDIC’s Web site on the closure.

The banks were the 38th, 39th and 40th to be shuttered in the U.S. so far this year.

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