3 More Banks Closed

So Far, 45 Institutions Have Failed in 2009
3 More Banks Closed
Three banks in Georgia, North Carolina and Kansas were closed by banking regulators on Friday, June 19, bringing to 40 the total number of failed banks so far in 2009. Five credit unions have either been closed or placed into conservatorship this year.

NOTE: Five additional banks were closed on Friday, June 26, bringing the annual total to 45 closed banks so far in 2009. Click here for details of these latest closings.

Southern Community Bank
The Southern Community Bank, Fayetteville, GA was closed by the Georgia Department of Banking and Finance. The Federal Deposit Insurance Corporation (FDIC) was appointed receiver. The FDIC sold the failed bank's deposits to United Community Bank, Blairsville, GA. The five offices of Southern Community Bank reopened on Saturday as branches of United Community Bank.

Southern Community Bank had total assets of $377 million and total deposits of approximately $307 million. United Community Bank paid a premium of 1 percent to acquire failed bank's deposits. United Community Bank also purchased about $364 million of the failed bank's assets, of which $253 million are covered under a loss-share transaction with the FDIC.

The estimated cost to the FDIC Deposit Insurance Fund (DIF) will be $114 million. Southern Community Bank was the seventh bank to fail in Georgia. The last FDIC-insured institution to be closed in the state was Silverton Bank, National Association, Atlanta, on May 1.

Cooperative Bank
Cooperative Bank, Wilmington, NC was closed by the North Carolina Office of Commissioner of Banks. The FDIC, as appointed receiver, sold the failed bank's deposits to First Bank, Troy, NC.

The 24 branches reopened Monday as branches of First Bank. Cooperative Bank had assets of $970 million and deposits of $774 million. First Bank agreed to purchase $942 million of assets. First Bank bought $852 million of the failed bank's assets in a loss-share agreement. First Bank also bought all the deposits, except about $57 million in brokered deposits. The cost to the FDIC Deposit Insurance Fund (DIF) will be $217 million. Cooperative Bank is the second bank to close in North Carolina this year. The first one was Cape Fear Bank, Wilmington, on April 10.

First National Bank of Anthony
First National Bank of Anthony, Anthony, KS was closed on Friday by the Office of the Comptroller of the Currency (OCC). The FDIC, as appointed receiver, sold the failed bank's deposits to the Bank of Kansas, South Hutchinson, KS. The six offices of First National Bank of Anthony, including the two in Johnson County, KS, operating under the name of First National Bank of Johnson County, will reopen as branches of Bank of Kansas. First National Bank of Anthony had assets of $156.9 million and deposits of $142.5 million. Bank of Kansas paid a premium of 0.5 percent to acquire all of the deposits of the failed bank. Bank of Kansas will buy $156.7 million of assets, and $130.5 million of those assets will be covered under a loss-share agreement with the FDIC.

The cost to the FDIC's Deposit Insurance Fund is $32.2 million. The failed bank is the second one to fail in Kansas this year. The last FDIC-insured institution to be closed in the state was TeamBank, Paola, on March 20.

High Desert Federal Credit Union
Late last week, the National Credit Union Administration (NCUA) announced that the Apple Valley, CA-based High Desert Federal Credit Union's assets were purchased by Alaska USA Federal Credit Union's. The National Credit Union Administration (NCUA) had been operating the institution since October, 2008, after the NCUA board put the credit union into conservatorship.


About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.




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