U.S. federal regulators close three more banks in Florida, Illinois and Georgia

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U.S. federal regulators close three more banks in Florida, Illinois and Georgia

2011-08-20 12:09:35 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Federal regulators on Friday closed three more banks in Florida, Illinois and Georgia, raising the total number of bank failures in the United States so far this year to 68.

The largest bank to be closed on Friday was the Lydian Private Bank which had its headquarters in Palm Beach, Florida. The bank, which had five branches, was closed by Florida's Office of the Comptroller of the Currency after its regular closing time.

After the closing, the Federal Deposit Insurance Corporation (FDIC) said it immediately entered into a purchase and assumption agreement with the Sabadell United Bank in Miami to assume all of the deposits of Lydian Private Bank.

Most customers should see no or little service disruptions despite the closure of the institution as the Lydian Private Bank's five branches will reopen on Monday as branches of Sabadell United Bank, and all depositors of Lydian Private Bank will automatically become depositors of Sabadell United Bank.

All of the services of the failed bank, 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. "Loan customers should continue to make their payments as usual."

As of June 30, Lydian Private Bank had approximately $1.70 billion in total assets and $1.24 billion in total deposits. In addition to assuming all of the deposits of the failed bank, Sabadell United Bank agreed to purchase essentially all of the assets.

The other two banks to be closed were the First Southern National Bank in Statesboro, Georgia and the First Choice Bank in Geneva, Illinois. Both banks had only one branch.

The First Southern National Bank, which had approximately $164.6 million in total assets and $159.7 million in total deposits, was assumed by the Heritage Bank of the South in Albany, Georgia. The First Choice Bank, which had approximately $141.0 million in total assets and $137.2 million in total deposits, was assumed by the Inland Bank & Trust in Oak Brook, Illinois.

The FDIC estimated that the combined cost of all three bank failures to the Deposit Insurance Fund (DIF) will be around $363.8 million, but said it was the least costly resolution for the DIF compared to other alternatives.

The failures bring the total number of U.S. bank failures so far this year to 68. It followed the closing of the Public Savings Bank in Huntingdon Valley, Pennsylvania on Thursday.

There were 157 bank failures in 2010.

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