This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Four Banks Fail; 2011 Total at 7

Stocks in this article: BACFBNCUWBKFCNCA

WASHINGTON ( TheStreet) -- State regulators shut down four banks on Friday, bringing the new year's total number of bank failures to seven, following 157 bank closures during 2010.

Three of the four failed banks -- Enterprise Banking Co., CommunitySouth Bank & Trust, andThe Bank of Asheville -- had been previously included in TheStreet's Bank Watch List of undercapitalized institutions, based on third-quarter regulatory data provided by SNL Financial.

United Western Bank is the lone exception. Its failure represents the biggest bank to go belly up since August.

Enterprise Banking Company

The Georgia Department of Banking and Finance closed Enterprise Banking Company of McDonough, Ga. and appointed the Federal Deposit Insurance Corp. as receiver. Since the FDIC was unable to find a buyer as it has for the great majority of the banks and thrifts that have failed over the past three years, the agency created a temporary institution called Deposit Insurance National Bank of McDonough, which will operate until Jan. 28, to allow retail checking and savings account depositors time to transfer their insured balances to other banks.

For Enterprise Banking Company customers with certificates of deposits or individual retirement accounts, the FDIC was set to mail checks for insured deposit balances directly to customers on Monday. Customers with brokered deposits were directed to contact their brokers for information on their deposits.

The FDIC said it hadn't yet determined the amount of deposits exceeding deposit insurance limits.

Enterprise Banking Company had $100.9 million in total assets and $95.5 million in deposits when it failed. The FDIC retained the failed bank's assets for later disposition and estimated the cost to the deposit insurance fund would be $39.6 million.

CommunitySouth Bank & Trust

South Carolina regulators took over CommunitySouth Bank & Trust of Easley, S.C. The FDIC was appointed receiver and arranged for the failed bank's $440.6 million in total assets and $402.4 million in total deposits to be assumed by CertusBank, NA, which is also headquartered in Easley.

CertusBank is a newly chartered bank subsidiary of Blue Ridge Holdings of Charlotte, N.C. The Office of the Comptroller of the Currency granted the holding company a "shelf charter" in November, and the Charlotte Observer reported at that time that Blue Ridge Holdings had raised $500 million in capital to finance bank purchases and was led by Chief Executive Officer Milton Jones and Chief Operating Officer Charlie Williams, who had both previously worked for Bank of America (BAC).

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs