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5 Banks in Georgia, Florida, Illinois & Kansas Closed by Regulators

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The FDIC was active this Friday with 5 bank closures. That's the most bank failures in one day since April. That brings the number of bank failures for the year to 38. At this time last year there had been 58 bank failures, and at this time in 2010 there had been 103 bank failures.

Two of the bank failures were in Georgia. That's a total of 8 failed banks in Georgia for 2012. Georgia continues to be in the lead for the state with the most 2012 bank failures. Second place is a tie between Illinois and Florida. After today, both now have 5 bank failures for 2012. Kansas had its first bank failure for 2012.

All of the failed banks were small with assets far under $1 billion. The largest one had total assets of $222.7 million, and the smallest had assets of $87.0 million.

The FDIC arranged for other banks to buy these 5 failed banks. The FDIC's Q&As for all of these banks have the message: "no one lost any money on deposit as a result of the closure of this bank".

The acquiring banks didn't have any information on their websites about their acquisitions of the failed banks. CD customers at the failed banks will have to wait to see what happens with the rates. The FDIC provided its typical paragraph on interest rates in all of the Q&As:

Interest on deposits accrued through close of business on July 20, 2012, will be paid at your same rate. [The failed bank's] rates will be reviewed by the new bank and may be lowered; however, you will be notified in writing of any changes. You may withdraw funds from any transferred account, regardless of whether your interest rate changes, without an early withdrawal penalty until you enter into a new deposit agreement with the new bank.

There were no credit union liquidations this week. The number of retail credit union liquidations for the year remains at 7. The last 2 closures took place on May 31st and June 1st.

Below is the summary of today's bank failures:

34th Bank Failure of 2012 (5th in Florida)

  • Closed Bank: The Royal Palm Bank of Florida, Naples, FL
  • FDIC Press Release
  • Size: 3 branches, $87.0 million in assets and $85.1 million in deposits
  • Acquiring Bank: First National Bank of the Gulf Coast, Naples, FL
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by First National Bank of the Gulf Coast (FDIC Q&A)
  • Rate Changes: The Royal Palm Bank of Florida's rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $13.5 million
  • Enforcement Action: FDIC 5/20/09 C&D Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 257.60% at DepositAccounts.com (see financial rating note)
35th Bank Failure of 2012 (7th in Georgia)

  • Closed Bank: Georgia Trust Bank, Buford, GA
  • FDIC Press Release
  • Size: 2 branches, $119.8 million in assets and $117.4 million in deposits
  • Acquiring Bank: Community & Southern Bank, Atlanta, GA
  • Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, has been assumed by Community and Southern Bank (FDIC Q&A)
  • Rate Changes: Georgia Trust Bank's rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $20.9 million
  • Enforcement Action: None
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 543.62% at DepositAccounts.com (see financial rating note)
36th Bank Failure of 2012 (8th in Georgia)

  • Closed Bank: First Cherokee State Bank, Woodstock, GA
  • FDIC Press Release
  • Size: 3 branches, $222.7 million in assets and $193.3 million in deposits
  • Acquiring Bank: Community & Southern Bank, Atlanta, GA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Community & Southern Bank (FDIC Q&A)
  • Rate Changes: First Cherokee State Bank's rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $36.9 million
  • Enforcement Action: FDIC 9/11/09 C&D Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 445.63% at DepositAccounts.com (see financial rating note)
37th Bank Failure of 2012 (1st in Kansas)

  • Closed Bank: Heartland Bank, Leawood, KS
  • FDIC Press Release
  • Size: 2 branches, $110.0 million in assets and $102.6 million in deposits
  • Acquiring Bank: Metcalf Bank, Lees Summit, MO
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Metcalf Bank (FDIC Q&A)
  • Rate Changes: Heartland Bank's rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $3.1 million
  • Enforcement Action: FDIC 3/14/11 Consent Order, FDIC 9/2/11 PCA
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 121.35% at DepositAccounts.com (see financial rating note)
38th Bank Failure of 2012 (5th in Illinois)

  • Closed Bank: Second Federal Savings and Loan Association of Chicago, Chicago, IL
  • FDIC Press Release
  • Size: 3 branches, $199.1 million in assets and $175.9 million in deposits
  • Acquiring Bank: Hinsdale Bank & Trust Company, Hinsdale, IL
  • Possible Uninsured Deposits: all deposit accounts has been assumed by Hinsdale Bank & Trust Company (FDIC Q&A)
  • Rate Changes: Second Federal Savings and Loan Association of Chicago's rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $76.9 million
  • Enforcement Action: OTS 3/23/09 C&D Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 412.36% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at DepositAccounts.com & Bankrate.com, Texas Ratios over 100% is considered at risk. Ratings at DepositAccounts.com and BauerFinancial are based on March 2012 data. Ratings at Bankrate.com are based on December 2011 data.

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