7 Banks Closed by Feds

6 GA Banks Top the List; Year's Total now at 64
7 Banks Closed by Feds
Federal regulators closed seven banks on Friday, July 24, including six related institutions in Georgia. A total of 64 banks have now failed so far in 2009. No additional credit unions were closed or put into conservatorship. So far, eight credit unions have failed this year.

The six bank subsidiaries of Security Bank Corporation, Macon, Georgia, were closed by the Georgia Department of Banking and Finance, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with State Bank and Trust Company, Pinehurst, Georgia, to assume all of the deposits of the six bank subsidiaries of Security Bank Corporation.

The six banks involved are: Security Bank of Bibb County, Macon, GA, with $1.2 billion in total assets and $1 billion in deposits; Security Bank of Houston County, Perry, GA, with $383 million in assets and $320 million in deposits; Security Bank of Jones County, Gray, GA, with $453 million in assets and $387 million in deposits; Security Bank of Gwinnett County, Suwanee, GA, with $322 million in assets and $292 million in deposits; Security Bank of North Metro, Woodstock, GA, with $224 million in assets and $212 million in deposits; and Security Bank of North Fulton, Alpharetta, GA, with $209 million in assets and $191 million in deposits.

As of March 31, 2009, the six banks had total assets of $2.8 billion and total deposits of approximately $2.4 billion. In addition to assuming all of the deposits of the failed bank, State Bank and Trust Company will acquire $2.4 billion in assets. The FDIC will retain the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $807 million.

The six banks had a total of 20 branches, which were to reopen on July 25 as branches of State Bank and Trust Company.

NY Bank Closure
Also on July 24, Waterford Village Bank, Clarence, New York, was closed by the New York State Banking Department, which then appointed the FDIC as receiver. Similarly, the FDIC entered into a purchase and assumption agreement with Evans Bank, N.A., Angola, New York, to assume all of the deposits of Waterford Village Bank.

The single office of Waterford Village Bank will reopen on Monday, July 27, as a branch of Evans Bank, N.A. Depositors of Waterford Village Bank will automatically become depositors of Evans Bank, N.A.

As of March 31, 2009, Waterford Village Bank had total assets of $61.4 million and total deposits of approximately $58 million. In addition to assuming all of the deposits of the failed bank, Evans Bank, N.A. agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.6 million.





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