Federal regulators close three more banks in Georgia and Florida

[News_Editor]

Federal regulators close three more banks in Georgia and Florida

2010-12-18 05:58:58 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Federal regulators closed three more banks in Georgia and Florida on Friday evening, raising the total number of bank failures so far this year to 154.

In Florida, the state's Office of the Comptroller of the Currency closed all three branches of Coral Gables-based The Bank of Miami, N.A. In Georgia, the Georgia Department of Banking and Finance closed all four branches of Dawsonville-based Chestatee State Bank and all three branches of the McCaysville-based Appalachian Community Bank, F.S.B.

The Federal Deposit Insurance Corporation (FDIC) immediately entered into a purchase and assumption agreement with three different banks to assume all of their deposits.

For The Bank of Miami, N.A., the Boca Raton-based 1st United Bank agreed to purchase and assume all of its deposits. The Little Rock-based Bank of the Ozarks assumed all the deposits of the Chestatee State Bank while the Madisonville, TN-based Peoples Bank of East Tennessee assumed the deposits of the Appalachian Community Bank, F.S.B.

Most, if not all customers, should see no or little service disruptions despite the closure of the institutions. The three branches of The Bank of Miami will reopen during their normal business hours on Monday as branches of 1st United Bank while the four branches of the Chestatee State Bank will reopen as branches of Bank of the Ozarks on Saturday. The Appalachian Community Bank, F.S.B. will also reopen as branches of the Peoples Bank of East Tennessee on Saturday.

All of the services of the failed banks, including checks, ATM and debit cards, will remain active. "Checks drawn on the bank will continue to be processed," the FDIC said in a statement for each bank. "Loan customers should continue to make their payments as usual."

As of September 30, The Bank of Miami, N.A. had approximately $448.2 million in total assets and $374.2 million in total deposits. 1st United Bank did not pay the FDIC a premium for the deposits of the bank but, in addition to assuming the failed bank's deposits, the 1st United Bank also agreed to purchase approximately $442.3 million of the failed bank's assets.

Besides that, the FDIC and the 1st United Bank entered into a loss-share transaction on approximately $313.5 million of The Bank of Miami's assets. Under this agreement, 1st United Bank will share in the losses on the asset pools.

The FDIC entered into similar agreements with the Bank of Ozarks and the Peoples Bank of East Tennessee. The Chestatee State Bank had approximately $244.4 million in total assets and $240.5 million in total deposits as of September 30 while the Appalachian Community Bank had approximately $68.2 million in total assets and $76.4 million in total deposits.

The FDIC estimated that the cost to the Deposit Insurance Fund (DIF) will be $64.0 million in the case of The Bank of Miami, N.A., while the cost to the DIF in Chestatee State Bank's case will be approximately $75.3 million. The costs for the Appalachian Community Bank, F.S.B. will be approximately $26 million.

The failures bring the total number of U.S. bank failures so far this year to 154. Last week, two banks in Pennsylvania and Michigan failed. They had a combined total of eight branches.

-- © BNO News All rights reserved 2010-12-18

[Tinkelbell]

Always doing my banking with only banks that are member of FDIC in all these years.

So when my bank was seiged by Federal regulators in early '09, wasn't worry a bit, still continue leaving my CD account there to mature.

Well, my bank turned around and reported a profit over 174+ million dollar in the 3rd quarter of this year.