Since Friday is Veterans Day, the FDIC was active this Thursday with a bank closure. The small Georgia bank, Community Bank of Rockmart, was closed by regulators. For this year the number of U.S. bank failures is now 88. Georgia continues to have a big lead over other states for the most 2011 bank failures. It's now at 23. Florida has second place with 12 failures.
The FDIC arranged for Century Bank of Georgia to assume all deposits of Community Bank of Rockmart except brokered deposits. So no depositors with regular accounts will lose any money even if they had deposits over the FDIC limit.
Century Bank of Georgia provided a welcome webpage with information for Community Bank of Rockmart customers. On that page is a list of FAQs. Two of those provided information on future interest rates of existing CDs:
10. Will I continue to earn interest at the same rate?
All interest on insured deposits accrued through Thursday, November 10, 2011 will be paid at the same rate. Interest accrued after that date will be paid at the same rate unless and until a notification of change is provided by Century Bank of Georgia.
11. How can I find the changes in deposit interest rates?
We will write to all deposit customers of Community Bank of Rockmart to inform them of the current and new rates from transaction accounts (checking, savings, and money market) as well as CDs. Your client representatives at the Rockmart office will be happy to answer any questions that you may have about your accounts.
As you can see in the above FAQs, Century Bank of Georgia didn't provide its decision how the rates on existing CD rates will change. Those with CDs at Community Bank of Rockmart will have to wait for notification.
This week there were no credit union liquidations or credit unions placed into NCUA conservatorship. So far this year there have been 12 credit union liquidations and 11 credit unions that have been placed into conservatorships.
Below is the summary of Thursday's bank failure.
88th Bank Failure of 2011 (23rd in Georgia)
- FDIC Press Release
- Closed Bank: Community Bank of Rockmart, Rockmart, GA
- Size: 1 branch, $62.4 million in assets and $55.9 million in deposits
- Acquiring Bank: Century Bank of Georgia, Cartersville, GA
- Possible Uninsured Deposits: all deposit accounts, excluding the Cede & Co. deposits, have been assumed by Century Bank of Georgia
- Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC Q&As)
- Estimated Cost to Deposit Insurance Fund: $14.5 million
- Enforcement Action: No public actions
- Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 330.87% at DepositAccounts.com (see financial rating note)