Atlanta’s Georgian Bank became the 95th bank failure of the year, according to the Federal Deposit Insurance Corp. on Friday.

Source/Full Story: MarketWatch
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Guaranty Bank of Austin, Tex. became the 81st bank failure of 2009 after it was closed by Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corp. as receiver, the federal agency said late Friday. The FDIC said it has entered into a “purchase and assumption agreement” with BBVA Compass of Birmingham, Ala. As of June 30, Guaranty Bank had total assets about $13 billion and total deposits of about $12 billion.

Source/Full Story: MarketWatch

Bank of Lincolnwood in Lincolnwood, Ill. became the 37th bank of the year to fail and the sixth Illinois bank failure in 2009, according to Federal Deposit Insurance Corp. Friday. Republic Bank of Chicago in Oak Brook, Ill. will assume all the bank’s deposits. As of May 26, Bank of Lincolnwood had total assets of about $214 million and total deposits of $202 million. Republic will purchase about $162 million in assets with FDIC retaining the remaining assets for later disposition

Source/Full Story: MarketWatch

Macomb, Ill.-based Citizens National Bank was closed by regulators, the 36th bank failure

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Champaign, Ill.-based Strategic Capital Bank was closed by regulators Friday, marking the 35th bank failure of 2009

Source/Full Story: MarketWatch

Four banks in Georgia, Michigan, California and Idaho were
closed by regulators Friday, costing the Federal Deposit Insurance
Corp.’s deposit insurance fund nearly $700 million as the effects of
the credit crisis continued rippling throughout the U.S. economy.

Source/Full Story:: MarketWatch

American Southern Bank of Kennesaw, Ga. was closed by the Georgia Department of Banking and Finance, the Federal Deposit Insurance Corporation said Friday. The closure marks the 26th bank fauilure of 2009, and the 51st since the beginning of the recession. Bank of North Georgia of Alpharetta, Ga. will assume all of the deposits. As of March 30, American Southern Bank had assets of about $112.3 million and total deposits of $104.3 million.

Michigan Heritage Bank of Farmington Hills, Mich. was closed by the Michigan Office of Financial and Insurance Regulation, according to the Federal Deposit Insurance Corporation Friday, making Michigan Heritage the 27th bank failure of 2009, and the 52nd of the recession. Level One Bank of Farmington Hills, Mich. will assume all of the deposits, except $50 million in brokered deposits held by Michigan Heritage. As of Dec. 31, Michigan Heritage had total assets of about $184.6 million and total deposits of $151.7 million. Earlier in the day, American Southern Bank of Kennesaw, Ga. became the 26th bank of 2009 to fail.

Calabasas, Ca.-based First Bank of Beverly Hills became the third bank closed by regulators Friday and the 28th U.S. bank failure of the year. The Federal Deposit Insurance Corp. said it will mail checks to insured depositors at the failed bank on Monday. First Bank of Beverly Hills had $1.5 billion in assets as of Dec. 31, the FDIC said, and $1 billion in deposits. The FDIC estimated the bank had $179,000 in uninsured deposits. The FDIC said, “an assuming institution could not be located” for the failed bank’s deposits and assets.

Ketchum, Idaho-based First Bank of Idaho became the fourth bank closed by regulators Friday, as the credit crisis continued claiming victims. The Federal Deposit Insurance Corp. said Minneapolis-based U.S. Bank  has assumed the failed bank’s deposits. First Bank of Idaho had $374 million in deposits as of Dec. 31, the FDIC said. The bank’s closure follows that of other banks in Georgia, Michigan and California on Friday.

Stockbridge, Ga.-based FirstCity Bank was closed by regulators Friday, marking the 18th U.S. bank failure of 2009. The Federal Deposit Insurance Corporation said in a statement that it will mail checks to insured depositors Monday morning, and that FirstCity’s direct deposits from the federal government such as Social Security and Veterans’ payments will be transferred to SunTrust Banks Inc.  FirstCity had $297 million in assets and $278 million in deposits as of March 18, the FDIC said.

Source: MarketWatch

Source:  Reuters

The worsening U.S. economy prompted the Federal Deposit Insurance Corp on Friday to double its projected U.S. bank failure costs to more than $80 billion over a five-year period ending in 2013.

The 25 U.S. bank failures in 2008 cost the agency $18 billion, the FDIC said. Another $65 billion in bank failure costs is expected from 2009 to 2013, it said.

On Thursday, the FDIC announced that the number of problem U.S. banks jumped by nearly 50 percent to 252 in the fourth quarter of 2008.

FDIC staff recommended the agency assess U.S. banks a special one-time fee to raise as much as $15 billion to restore the fund being depleted by bank failures. The assessment of 20 basis points, which equates to $200,000 per $100 million in domestic deposits, in the third quarter would represent the first such move since 1996, when regulators took a similar action in the aftermath of the savings and loans crisis.

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Source: MarketWatch

FirstBank Financial Services of McDonough, Ga. became the seventh bank of 2009 to fail and the 32nd of the recession on Friday, according to the Federal Deposit Insurance Corporation. Regions Financial Corp. said it will assume about $285 million in total deposits from FirstBank, and that the FDIC will retain most of FirstBank’s loan portfolio for later disposition.

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Source:  MarketWatch

Federal regulators closed three banks in a single day Friday, as the ongoing credit crisis showed no signs of abating.

Utah’s MagnetBank became the fourth bank failure of the year, and the Federal Deposit Insurance Corp. was forced to directly refund depositors after being unable to find another institution willing to take over its operations.

That marked the first time the FDIC has been unable to find an acquirer for a failed bank in nearly five years, according to FDIC spokesman David Barr. “This bank did not have an attractive franchise value, and not many retail deposits or core deposits,” Barr said. The FDIC had conducted an extensive marketing process for the bank’s assets, he said.

Salt Lake City-based MagnetBank had total assets of $292.9 million as of Dec. 2, and $282.8 million in total deposits. “It is estimated that the bank did not have any uninsured funds,” the FDIC said in a statement.
The FDIC later said it has also closed Maryland-based Suburban Federal Savings Bank, and Florida’s Ocala National Bank.

Suburban Federal had total assets of roughly $360 million as of Sep. 30, and total deposits of $302 million, the FDIC said in a statement. Tappahannock, Va.-based Bank of Essex agreed to assume all of the failed bank’s deposits, the FDIC said.

Ocala National had $223.5 million in total assets as of Dec. 31, and $205.2 million in total deposits, the FDIC said. Winter Haven, Fla.-based CenterState Bank has agreed to assume all of the failed bank’s deposits.
The closures mark the fourth, fifth and sixth bank failures of 2009, bringing the total to 31 since the start of the credit crisis.

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Source: Bloomberg.com

First Centennial Bank of Redlands, California, was seized by a state regulator, the third U.S. bank to fail this year, as the recession deepens and the slump in the housing industry sends home foreclosures to records.

First Centennial, with $803.3 million in assets and $676.9 million in deposits, was shut by the California Department of Financial Institutions and the Federal Deposit Insurance Corp. was named receiver. First California Bank, based in Westlake Village, will assume deposits and open the failed bank’s 6 offices near Los Angeles and San Diego on Jan. 26 as branches, the FDIC said.

“Depositors of the failed bank will automatically become depositors of First California,” the FDIC said in an e-mailed statement. “There is no need for customers to change their banking relationship to retain their deposit insurance coverage.”

Regulators closed 25 banks last year, the most since 1993, draining money from the FDIC deposit insurance fund, which had $34.6 billion as of Sept. 30. National Bank of Commerce in Berkeley, Illinois, and Bank of Clark County in Vancouver, Washington, were shuttered by regulators on Jan. 16.

First California will buy $293 million in assets and pay a premium of 5.3 percent to assume the failed bank’s insured deposits, the FDIC said. The cost to the deposit insurance fund, supported by fees on insured banks, will be an estimated $227 million, the agency said. First Centennial had about $12.8 million in deposits that exceeded insured limits, the FDIC said.

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Source: MarketWatch

Berkeley, Ill.-based National Bank of Commerce was closed by regulators Friday, marking the first bank failure of 2009, the Federal Deposit Insurance Corporation said in a statement. Republic Bank of Chicago will assume all of National Bank of Commerce’s deposits, while the two locations of National Bank of Commerce will reopen Saturday as branches of Republic Bank, the FDIC said. National Commerce Bank had total deposits of $402.1 million as of Jan. 7, and total assets of $430.9 million, the FDIC said.

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Source: MarketWatch

Haven Trust Bank of Duluth, Ga. fails

The Federal Deposit Insurance Corporation said late Friday that Haven Trust Bank of Duluth, Ga., was closed by the Georgia Department of Banking and Finance. The failure not only marks the 24th bank failure of the year, but the fifth in the Atlanta area. The FDIC was named receiver, and Branch Banking & Trust of Winston-Salem, N.C. will assume the deposits. As of Dec. 8, Haven Trust had total assets of $572 million and total deposits of $515 million. The FDIC said that BB&T agreed to assume all of the deposits for $112,000, and buy about $55 million of the failed bank’s assets. The FDIC said it will retain remaining assets for later disposition. (Corrects that BB&T will purchase $55 million in assets, not all assets for $55 million, and that FDIC will retain remainder of assets.)

Sanderson State Bank of Sanderson, Texas fails: 25th of year

The Federal Deposit Insurance Corporation said late Friday that the Sanderson State Bank of Sanderson, Texas, was closed by the Texas Department of Banking, making it the 25th U.S. bank failure of the year. The Pecos County State Bank of Fort Stockton, Texas, will assume all of Sanderson’s deposits. As of Dec. 3, Sanderson had total assets of $37 million and total deposits of $27.9 million. Pecos County State Bank will assume all of the deposits for a 0.55% premium, and buy $3.8 million of assets, with the option to buy owned premises and equipment. It was the second bank failure announced by the FDIC on Friday.

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Source: The Associated Press

Federal regulators on Friday shut down two big thrifts based in Southern California, saying they fell victim to the acute distress in the housing market in that state.

The failures of Downey Savings and Loan Association, based in Newport Beach, and PFF Bank & Trust of Pomona brought the number of U.S. bank failures this year to 22.

The Federal Deposit Insurance Corp. was appointed receiver of the two thrifts. U.S. Bank, based in Minneapolis, acquired all the deposits of both.

Downey, the 23rd-largest U.S. savings and loan, had assets of $12.8 billion and deposits of $9.7 billion as of Sept. 30. PFF, the 38th-largest, had assets of $3.7 billion and $2.4 billion in deposits.

Also Friday, Georgia regulators shut down The Community Bank, a small bank in Loganville, Ga. The FDIC was made receiver of the bank, which had $681 million in assets and $611.4 million in deposits as of Oct. 17. The FDIC said all the bank’s deposits and about $84.4 million of its assets will be acquired by Bank of Essex, of Tappahannock, Va. Its four branches will reopen Monday as offices of Bank of Essex.

The Office of Thrift Supervision, the federal regulator for the two California thrifts, said they both suffered mounting losses since last year. Downey’s business focused on nontraditional, high-risk home mortgages such as payment-option and adjustable-rate loans.

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Source: money.cnn.com

Nevada regulators have shut down Silver State Bank. It was the 11th failure this year of a federally insured bank.

Andrew McCain, son of Republican presidential nominee John McCain was a member of the bank’s board, but recently stepped down for “personal reasons,” according to The Wall Street Journal. The younger McCain, 46, had also served on Silver State’s audit committee, and was only with the bank for five months before leaving on July 26, the Journal reported.

The Federal Deposit Insurance Corp. was appointed receiver of the bank, located in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.

The FDIC said Friday the bank’s insured deposits will be assumed by Nevada State Bank of Las Vegas. Its branches will reopen Monday as offices of Nevada State Bank in Nevada and National Bank of Arizona in Arizona.

The agency said depositors of Silver State Bank will continue to have full access to their deposits.

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