7 Banks Closed March 19

1 Credit Union Also Placed Into Conservatorship State and federal regulators closed seven banks on Friday, March 19, and one federal credit union was placed into conservatorship.

These latest failures raise to 42 the number of failed institutions that have been closed, acquired or taken over by regulators so far in 2010.

Here is a rundown of the latest failures:

American National Bank
American National Bank, Parma, Ohio, was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The National Bank and Trust Company, Wilmington, Ohio, to assume all of the deposits of American National Bank.

The sole branch of American National Bank will reopen on Monday as a branch of The National Bank and Trust Company. Depositors of American National Bank will automatically become depositors of The National Bank and Trust Company.

As of December 31, 2009, American National Bank had approximately $70.3 million in total assets and $66.8 million in total deposits. The National Bank and Trust Company did not pay the FDIC a premium for the deposits of American National Bank. In addition to assuming all of the deposits of the failed bank, The National Bank and Trust

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.1 million.

Century Security Bank
Century Security Bank, Duluth, Georgia, was closed by the Georgia Department of Banking and Finance, which FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Upson, Thomaston, Georgia, to assume all of the deposits of Century Security Bank.

The two branches of Century Security Bank were to reopen during normal business hours beginning on Saturday as branches of Bank of Upson. Depositors of Century Security Bank will automatically become depositors of Bank of Upson.

As of December 31, 2009, Century Security Bank had approximately $96.5 million in total assets and $94.0 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $29.9 million.

Advanta Bank Corp.
The FDIC approved the payout of the insured deposits of Advanta Bank Corp., Draper, Utah. The bank was closed by the Utah Department of Financial Institutions, which appointed the FDIC as receiver.

The FDIC was unable to find another financial institution to take over the banking operations of Advanta Bank Corp. As a result, checks to depositors for their insured funds will be mailed on Monday. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. Customers who placed deposits with brokers should contact the brokers directly for more information about the status of their funds.

As of December 31, 2009, Advanta Bank Corp. had approximately $1.6 billion in total assets and $1.5 billion in total deposits. At the time of closing, the bank had an estimated $247,000 in uninsured funds. This amount is an estimate that is likely to change once the FDIC obtains additional information from the bank's customers.

The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $635.6 million.

Appalachian Community Bank
Appalachian Community Bank, Ellijay, Georgia, was closed 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 Community & Southern Bank, Carrollton, Georgia, to assume all of the deposits of Appalachian Community Bank.

The 10 branches of Appalachian Community Bank were to reopen on Saturday as branches of Community & Southern Bank. This transaction also includes all of Appalachian Community Bank's branches that operated under the trade name of Gilmer County Bank.

The closure does not involve Appalachian Community Bank F.S.B., McCaysville, Georgia, or any of its branch locations. Appalachian Community Bank F.S.B., McCaysville will continue to operate as usual.

Depositors of Appalachian Community Bank will automatically become depositors of Community & Southern Bank.

As of December 31, 2009, Appalachian Community Bank had approximately $1.01 billion in total assets and $917.6 million in total deposits. Community & Southern Bank will pay the FDIC a premium of one percent to assume all of the deposits of Appalachian Community Bank.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $419.3 million.

Bank of Hiawassee
Bank of Hiawassee, Hiawassee, Georgia, was closed 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 Citizens South Bank, Gastonia, North Carolina, to assume all of the deposits of Bank of Hiawassee.

The five branches of Bank of Hiawassee were to reopen on Saturday as branches of Citizens South Bank. This transaction includes a branch office of Bank of Hiawassee in Blue Ridge, Georgia, operating under the business name of Bank of Blue Ridge, and the branch office in Blairsville, Georgia, operating under the name of the Bank of Blairsville. Depositors of Bank of Hiawassee will automatically become depositors of Citizens South Bank.

As of December 31, 2009, Bank of Hiawassee had approximately $377.8 million in total assets and $339.6 million in total deposits. Citizens South Bank will pay the FDIC a premium of one percent to assume all of the deposits of Bank of Hiawassee. In addition to assuming all of the deposits of the failed bank, Citizens South Bank agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $137.7 million.

First Lowndes Bank
First Lowndes Bank, Fort Deposit, Alabama, was closed by the Alabama Banking Department, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank, Luverne, Alabama, to assume all of the deposits of First Lowndes Bank.

The four branches of First Lowndes Bank were to reopen under normal business hours beginning Saturday as branches of First Citizens Bank. Depositors of First Lowndes Bank will automatically become depositors of First Citizens Bank.

As of December 31, 2009, First Lowndes Bank had approximately $137.2 million in total assets and $131.1 million in total deposits. First Citizens Bank did not pay the FDIC a premium to assume all of the deposits of First Lowndes Bank. In addition to assuming all of the deposits, First Citizens Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $38.3 million.

State Bank of Aurora
State Bank of Aurora, Aurora, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northern State Bank, Ashland, Wisconsin, to assume all of the deposits of State Bank of Aurora.

The sole branch of State Bank of Aurora will reopen on Monday as a branch of Northern State Bank. Depositors of State Bank of Aurora will automatically become depositors of Northern State Bank.

As of December 31, 2009, State Bank of Aurora had approximately $28.2 million in total assets and $27.8 million in total deposits. Northern State Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of State Bank of Aurora. In addition to assuming all of the deposits, Northern State Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.2 million.

Tracy Federal Credit Union
The National Credit Union Administration (NCUA) placed into conservatorship Tracy Federal Credit Union of Tracy, California.

The action was taken to preserve member assets and ensure uninterrupted credit union service. Member funds are federally insured by the National Credit Union Share Insurance Fund up to at least $250,000.

Tracy Federal Credit Union's 5,900 members can continue to conduct normal financial transactions - deposit and access funds, make loan payments and use share drafts. Tracy Federal Credit Union is a full service credit union, with assets of $24 million, that provides financial services to residents of the city of Tracy.

The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses. Member deposits are safe.





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