WASHINGTON (TheStreet) -- Regulators shut down seven banks Friday, bringing this year's total number of U.S. bank and thrift failures to 37.
The failed banks had combined total assets of $3.32 billion. The Federal Deposit Insurance Corp. acted as receiver in all seven failures. After finding buyers for six of the failed institutions, the FDIC estimated the total cost to its deposit insurance fund would be $1.28 billion.
TheStreet.com Ratings had previously assigned E (Very Weak) or lower financial strength ratings to all seven banks, and all were included in TheStreet.com's listing of undercapitalized banks.
American National BankThe Office of the Comptroller of the Currency shuttered American National Bank of Parma, Ohio. The failed institution had $70 million in total assets and was acquired by The National Bank & Trust Company of Wilmington, Ohio, the main subsidiary of NB&T Financial Group (NBTF). The FDIC agreed to share in losses on about $50 million of the acquired assets and estimated the cost to its deposit insurance fund would be $17.1 million. American National Bank's office was scheduled to reopen Monday as a branch of National Bank & Trust Company.
Century Security BankThe Georgia Department of Banking and Finance closed Century Security Bank. The FDIC arranged for Bank of Upson of Thomaston, Ga., to assume the failed bank's deposits and its total assets of about $97 million. Bank of Upson is held by SouthCrest Financial (SCSG). The FDIC agreed to share in losses on roughly $82 million of the acquired assets and estimated the cost to its deposit insurance fund would be $29.9 million. Century Security's two offices were set to reopen as Bank of Upson branches during normal business hours Saturday.
Advanta Bank Corp.The Utah Department of Financial Institutions shuttered Advanta Bank Corp., which had $1.6 billion in total assets. Since the FDIC was unable to find another institution to take over the failed bank, the agency announced that retail depositors would have checks mailed to them on Monday for their insured balances, while brokered deposits would be paid out directly to the brokers. The FDIC estimated that uninsured deposits totaled $247,000 but said this figure was likely to change when it received additional information from customers. The FDIC estimated that the cost to the deposit insurance fund from Advanta's failure would be $635.6 million.
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