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.

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