Three Banks Fail; 2011 Tally at 68
NEW YORK (TheStreet) -- Regulators on Friday shuttered one bank each in Florida, Georgia and Illinois, bringing this year's total number of bank failures to 68.
Lydian Private Bank
The Office of the Comptroller of the Currency on closed Lydian Private Bank of Palm Beach, Fla., which had $1.7 billion in total assets and $1.24 billion in deposits when it failed. The Federal Deposit Insurance Corp. was appointed receiver and sold the failed thrift to Sabadell United Bank, NA, of Miami, which is a subsidiary of Grupo Casa Saba S.A. (SAB).The FDIC agreed to cover 80% of losses on $907.1 million of assets acquired by Sabadell United Bank, and estimated the cost of Lydian Private Bank's failure to the deposit insurance fund would be $293.2 million. Lydian Private Bank was the second-largest bank on the Watch List, slipping to critically undercapitalized status after regulators forced the institution to beef-up loan loss reserves and restate its first-quarter financial report in June to show a $23.4 million, increasing from an earlier reported $15.9 million. The revised first-quarter net loss was followed by a $10.6 million second-quarter loss. The institution was operating under a September 2010 regulatory cease and desist order, agreeing to raise capital and improve its board of directors oversight. Lydian's five offices were scheduled to reopen Monday as branches of Sabadell United Bank.
First Southern National BankThe OCC also took over First Southern National Bank of Statesboro, Ga., which had $164.6 million in total assets and $159.7 million in deposits when it failed. The FDIC was appointed receiver and sold the failed bank to Heritage Bank of the South , of Albany, Ga. The FDIC agreed to cover 80% of losses on $115.7 million in assets acquired by Heritage Bank of the South, and estimated the cost of First Southern National Bank's failure to the deposit insurance fund would be $39.6 million. First Southern Bank's office was set to reopen Saturday as a branch of Heritage Bank of the South. The acquiring bank is held by Heritage Financial Group (HBOS), and previously purchased the failed Citizens Bank of Effingham of Springfield, Ga., from the FDIC in February.
First Choice BankThe Illinois Department of Financial and Professional Regulation closed First Choice Bank of Geneva, which had total assets of $141 million and $137.2 million in deposits. As receiver, the FDIC sold the failed institution to Inland Bank & Trust of Oak Brook, Ill. First Choice Bank's sole branch was scheduled to reopen Saturday as a branch of Inland Bank & Trust. The FDIC estimated that First Choice Bank's failure would cost the deposit insurance fund $31 million.
Thorough Bank Failure CoverageGeorgia leads all state with 17 bank failures this year, followed by Florida with 10 and Illinois with seven bank closures. All bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn. To submit a news tip, send an email to: firstname.lastname@example.org.
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