6 Banks Closed on Dec. 17

2010 Tally of Failed Institutions: 181
6 Banks Closed on Dec. 17
Federal and state regulators closed six banks on Friday, Dec. 17. Additionally, one credit union closed this past week, and another was placed into conservatorship.

These latest announcements raise the total number of failed institutions to 181 so far in 2010.

The latest failures:

AEA Federal Credit Union, Yuma, Ariz.

The National Credit Union Administration assumed control of operations at AEA Federal Credit Union of Yuma, Ariz. NCUA's goal is to continue credit union service to the members and ensure safe and sound credit union operations. The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union and protect members' interests or protect the NCUSIF.

AEA Federal Credit Union is a full service credit union had $309 million in assets.

First Southern Bank, Batesville, Ark.

First Southern Bank, Batesville, Ark., was closed by the Arkansas State Bank Department, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Southern Bank, Poplar Bluff, Mo., to assume all of the deposits of First Southern Bank. The two branches of First Southern Bank were to reopen during normal business hours beginning Saturday as branches of Southern Bank.

As of Sept. 30, First Southern Bank had approximately $191.8 million in total assets and $155.8 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $22.8 million.

Community National Bank, Lino Lakes, Minn.

Community National Bank, Lino Lakes, Minn., was closed by The Office of the Comptroller of the Currency, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Farmers & Merchants Savings Bank, Manchester, Iowa, to assume all of the deposits of Community National Bank.

The two branches of Community National Bank were to reopen on Saturday as branches of Farmers & Merchants Savings Bank

As of Sept. 30, Community National Bank had approximately $31.6 million in total assets and $28.8 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $3.7 million.

United Americas Bank, National Association, Atlanta

United Americas Bank, National Association, Atlanta, was closed by the OCC, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, Macon, Ga., to assume all of the deposits of United Americas Bank, N.A. The two branches of United Americas Bank, N.A. were to reopen during normal business hours beginning Saturday as branches of State Bank and Trust Company.

As of Sept. 30, United Americas Bank, N.A. had approximately $242.3 million in total assets and $193.8 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $75.8 million.

Bank of Miami, National Association, Coral Gables, Fla.

The Bank of Miami, National Association, Coral Gables, Fla., was closed by the OCC, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with 1st United Bank, Boca Raton, Fla., to assume all of the deposits of The Bank of Miami, N.A. The three branches of The Bank of Miami, N.A. will reopen on Monday as branches of 1st United Bank.

As of Sept, 30, The Bank of Miami, N.A. had approximately $448.2 million in total assets and $374.2 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $64 million.

Chestatee State Bank, Dawsonville, Ga.

Chestatee State Bank, Dawsonville, Ga., was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Ark., to assume all of the deposits of Chestatee State Bank. The four branches of Chestatee State Bank will reopen during normal business hours beginning Saturday as branches of Bank of the Ozarks.

As of Sept. 30, Chestatee State Bank had approximately $244.4 million in total assets and $240.5 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund will be $75.3 million.

Appalachian Community Bank, F.S.B., McCaysville, Ga.

Appalachian Community Bank, F.S.B., McCaysville, Ga., was closed today by The Office of Thrift Supervision, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Peoples Bank of East Tennessee, Madisonville, Tenn., to assume all of the deposits of Appalachian Community Bank, F.S.B., except for brokered deposits and certain out-of-state certificates of deposit. The three branches of Appalachian Community Bank, F.S.B. were to reopen during normal business hours beginning Saturday as branches of Peoples Bank of East Tennessee.

As of Sept. 30, Appalachian Community Bank, F.S.B. had approximately $68.2 million in total assets and $76.4 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund will be $26 million.

Beehive Credit Union, Salt Lake City

The NCUA has been appointed liquidating agent of Beehive Credit Union of Salt Lake City by the Utah Department of Financial Institutions. Security Service Federal Credit Union of San Antonio immediately purchased and assumed Beehive's assets, liabilities and members.

Beehive had approximately $145 million in assets and served 18,000 members. The credit union was established in 1954 to serve employees of Utah state government.

Security Service Federal Credit Union is a large, full-service institution with $5.9 billion in assets and 785,000 members.


About the Author

Tracy Kitten

Tracy Kitten

Director of Global Events Content and Executive Editor, BankInfoSecurity & CUInfoSecurity

A veteran journalist with more than 20 years' experience, Kitten has covered the financial sector for the last 13 years. Before joining Information Security Media Group in 2010, where she now serves as director of global events content and executive editor of BankInfoSecurity and CUInfoSecurity, she covered the financial self-service industry as the senior editor of ATMmarketplace, part of Networld Media. Kitten has been a regular speaker at domestic and international conferences, and was the keynote at ATMIA's U.S. and Canadian conferences in 2009. She has been quoted by CNN.com, ABC News, Bankrate.com and MSN Money.




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