Posted on 07/24/2009 5:43:56 PM PDT by Jet Jaguar
U.S. regulators closed seven small banks on Friday, a pace matching a one-day total seen earlier in July and bringing the number of failures so far this year to 64.
Six of the banks were in Georgia and were subsidiaries of Security Bank Corp, having a total of 20 branches, $2.8 billion in assets and about $2.4 billion in deposits, the Federal Deposit Insurance Corp said.
State Bank and Trust Co of Pinehurst, Georgia, agreed to assume all of the deposits at the six banks, whose branches will reopen under State Bank's name. State Bank will also purchase $2.4 billion of the assets.
The failure of the six institutions will cost the FDIC deposit insurance fund an estimated $807 million.
The FDIC said State Bank and Trust Co received a $300 million capital infusion from a group of 26 investors to help finance the deposit assumption and purchase the assets.
The FDIC said Waterford Village Bank of Clarence, New York, had been closed, with assets of $61.4 million and deposits of about $58 million.
Evans Bank NA of Angola, New York, will assume all of Waterford's deposits and the failure is expected to cost the FDIC's insurance fund $5.6 million.
The number of bank failures has increased dramatically this year as the struggling economy and loan delinquencies have taken a severe toll on financial institutions.
In contrast to the 64 failures so far this year, there were just 25 banks seized in all of 2008, and only three in 2007.
In July alone, there have been 19 bank failures.
The failures have been draining the FDIC's deposit insurance fund, and the agency has taken steps -- including an emergency assessment on banks -- to replenish the fund.
(Excerpt) Read more at reuters.com ...
More green shoots of recovery, I see.
Georgia is getting slammed with bank closings.
Bank regulation and centralization.
Were the banking regulations in Georgia written on the back of a cocktail napkin?
Georgia seems to have an inordinate number of bank failures
for its size.
“Were the banking regulations in Georgia written on the back of a cocktail napkin?”
That or a pack of matches ;-)
Failed Bank Information for Security Bank of Houston County, Perry, GA
Failed Bank Information for Security Bank of Bibb County, Macon, GA
Failed Bank Information for Security Bank of North Metro, Woodstock, GA
Failed Bank Information for Security Bank of North Fulton, Alpharetta, GA
Failed Bank Information for Security Bank of Gwinnett County, Suwanee, GA
Failed Bank Information for Waterford Village Bank, Williamsville, NY
There is something seriously wrong with Georgia bank regulators. I remember Jimmy Carter had a guy in his administration that was forced to resign because of a Georgia banking scandal (remember the good old days when Democrats actually had the personal integrity to resign?)
Bert Lance? I've known a couple of guys who worked for him. Neither seemed to be fans.
Thanks. I was blanking on the name! Times have sure changed!
Tips of the iceberg and the Titanic just got under way.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.