This Day On The Street
Continue to site right-arrow
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

4 Banks Fail Bringing 2012 Total to Seven (Update 1)

Updated with information subsequently released by the FDIC, regarding brokered deposits at First Guaranty Bank and Trust Company and Tennessee Commerce Bank.

NEW YORK ( TheStreet) -- State regulators on Friday shut down four banks, bringing this year's total number of bank failures to seven.

All four failed banks were previously included in TheStreet's third-quarter Bank Watch List of undercapitalized institutions, based on regulatory data provided by SNL Financial.

First Guaranty Bank and Trust Company

The Florida Office of Financial Regulation closed First Guaranty Bank and Trust Co. of Jacksonville, which had $377.9 million in total assets and $349.5 million in deposits when it failed.

The Federal Deposit Insurance Corp. was appointed receiver, and sold the failed institution's assets and deposits, "except for certain brokered deposits," to CenterState Bank of Florida, NA, of Winter Haven.

The FDIC agreed to cover 80% of losses on $292.9 million of the acquired assets. The acquiring is a subsidiary of CenterState Banks (CSFL - Get Report), and just last week, purchased the failed Central Florida State Bank.

First Guaranty Bank and Trust's eight branches were scheduled to reopen Monday as branches of CenterState Bank of Florida, NA. The FDIC estimated that the cost of First Guaranty Bank ad Trust's failure to the deposit insurance fund would be $82.0 million.

Customers of the failed bank with deposits made through brokers will need to contact their brokers directly for more information, since the FDIC pays insured balances directly to the brokers.

Interested in more on CenterState Banks? See TheStreet Ratings' report card for this stock.

Tennessee Commerce Bank

State Regulators closed Tennessee Commerce Bank of Franklin, which had $1.185 billion in total assets and $1.156 million in deposits when it failed.

The failed bank was held by Tennessee Commerce Bancorp (TNCC), and slipped from well capitalized to undercapitalized in the third quarter, when it booked a net loss of $102.8 million, which the holding company said resulted from "a $92.6 million charge to provision expense during the third quarter," resulting from "preliminary loan losses of $76.3 million combined with $12.1 million of specific reserves on classified loans identified by examiners" of the FDIC and the Tennessee Department of Financial Institutions.

The FDIC was appointed receiver and sold the failed bank's deposits -- except for some brokered deposits -- to Republic Bank & Trust Co. of Louisville, Ky., which is the main subsidiary of Republic Bancorp (RBCAA - Get Report).

Republic Bank & Trust agreed to take on just $203.9 million of the failed bank's assets, with the FDIC retaining the rest for later disposition.

The failed bank's office was set to reopen Monday as a branch of Republic Bank & Trust.

The FDIC estimated that the cost to the deposit insurance fund from Tennessee Commerce Bank's failure would be $416.8 million.

Customers with brokered deposits will need to contact their brokers for more information.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
TNCC $0.00 0.00%
CSFL $11.86 0.00%
RBCAA $24.44 0.00%
USB $42.86 0.00%
AAPL $123.25 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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