Guaranty Bank Among Four Closed on Aug. 21

2009 Tally Stands at 81 Failed Banks Guaranty Bank, a $13 billion Texas-based institution, tops the list of four banks closed by federal regulators on Friday. These closures bring the year's running tally to 90 failed institutions - 81 banks and nine credit unions that have either closed or gone into conservatorship.

Guaranty Bank Acquired by BBVA Compass
Guaranty Bank
, Austin, TX was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with BBVA Compass, Birmingham, Alabama, to assume all of the deposits of Guaranty Bank, excluding those from brokers.

Guaranty Bank had 103 branches in Texas and 59 branches in California. Former branches of Guaranty Bank were to reopen during normal banking hours starting Saturday as branches of BBVA Compass.

As of June 30, 2009, Guaranty Bank had total assets of approximately $13 billion and total deposits of approximately $12 billion. In addition to assuming all of the deposits of the failed bank, BBVA Compass agreed to purchase $12 billion of the failed bank's 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 $3 billion.

ebank Acquired by Stearns Bank
ebank, Atlanta, Georgia, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of ebank.

The sole branch of ebank will reopen on Monday as a branch of Stearns Bank, N.A. Depositors of ebank will automatically become depositors of Stearns Bank, N.A.

As of July 10, 2009, ebank had total assets of $143 million and total deposits of approximately $130 million. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. 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 $63 million.

First Coweta Acquired by United Bank
First Coweta
, Newnan, Georgia was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all of the deposits of First Coweta, excluding those from brokers.

The four branches of First Coweta were to reopen on Saturday as branches of United Bank.

As of July 31, 2009, First Coweta had total assets of $167 million and total deposits of approximately $155 million. United Bank will pay the FDIC a premium of 1.01 percent to assume all of the deposits of First Coweta. In addition to assuming all of the deposits of the failed bank, United Bank agreed to purchase $155 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and United Bank entered into a loss-share transaction on approximately $124 million of First Coweta's assets. United Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $48 million.

CapitalSouth Bank Acquired by IBERIABANK
CapitalSouth Bank
, Birmingham, Alabama, was closed by the Alabama State Banking Department, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all of the deposits of CapitalSouth Bank, excluding those from brokers.

The ten branches of CapitalSouth Bank will reopen on Monday as branches of IBERIABANK.

As of June 30, 2009, CapitalSouth Bank had total assets of $617 million and total deposits of approximately $546 million. In addition to assuming all of the deposits of the failed bank, IBERIABANK agreed to purchase $589 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. The FDIC and IBERIABANK entered into a loss-share transaction on approximately $499 million of CapitalSouth Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $151 million.





Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing bankinfosecurity.eu, you agree to our use of cookies.