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Four Banks Fail; 2011 Total at 7

Stocks in this article: BAC FBNC UWBK FCNCA

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).

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