WASHINGTON ( TheStreet) -- Regulators shut down two banks and two thrifts Friday, bringing the total number of failed U.S. banks and savings and loans during 2009 to 81. The Office of Thrift Supervision took over ebank of Atlanta and appointed the FDIC receiver. The FDIC then sold the thrift's deposits and sole office to Stearns Bank NA. Georgia regulators shut down First Coweta Bank of Newnan, Ga. The Federal Deposit Insurance Corp. was appointed receiver and sold the failed bank's retail deposits and branches to United Bank of Zebulon, Ga. The Alabama State Banking Department closed CapitalSouth Bank of Birmingham, Ala. and appointed the FDIC receiver. The FDIC sold all of CapitalSouth's retail deposits and branches to IBERIABANK of Lafayette, La. IBERIABANK is the main subsidiary of IBERIABANK Corp. ( IBKC). Lastly, the Office of Thrift Supervision shuttered Guaranty Bank of Austin, Texas, the main subsidiary of Guaranty Financial Group ( GFG). In a deal that was leaked Thursday, the FDIC sold all of the bank's retail deposits and branches to BBVA Compass of Birmingham, Ala., the main U.S. subsidiary of Banco Bilbao Vizcaya Argentaria SA ( BB). First Coweta and CapitalSouth were included in TheStreet.com's preliminary list of 104 undercapitalized banks and thrifts, based on preliminary second-quarter data. Guaranty Bank and ebank were not included in the preliminary second-quarter list, since data for most thrifts was unavailable when the report was published on Aug. 6. Of the 89 institutions on a previous list published TheStreet.com in late May, 35 have failed. All previous bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive Bank Failure Map.
Georgia continues to lead all states with 23 bank or thrift failures during 2008 and 2009, followed by Illinois with 14, California with 13, Florida with eight and Nevada with five. Large bank holding companies that have acquired failed institutions during 2008 and 2009 include J.P. Morgan Chase ( JPM), which acquired Washington Mutual, the largest-ever bank or thrift to fail in the U.S.; SunTrust Banks ( STI); Regions Financial ( RF); Fifth Third Bancorp ( FITB); U.S. Bancorp ( USB); Zions Bancorp ( ZION); PNC Financial ( PNC); and BB&T Corp ( BBT).
First Coweta was organized in 2004. Like many of the recently failed banks in the Atlanta area, it was heavily concentrated in residential construction and commercial real estate lending. Asset quality slid steadily over the past year, and the institution was included on TheStreet.com's lists of undercapitalized banks for the past three quarters. The bank had $167 million in total assets when it was shut down, and $155 million in deposits. In addition to all of the retail deposits, United Bank purchased $155 million in First Coweta's assets, with the FDIC agreeing to share in losses on $124 million. United Bank chose not to acquired brokered deposits totaling $11 million, and the FDIC instructed Union Bank customers with CDs made through brokers to contact those brokers. First Coweta's four branches were scheduled to reopen Saturday as branches of United Bank. The FDIC estimated the cost to its insurance fund would be $48 million.
CapitalSouth Bank's $3.6 million in brokered deposits were not acquired by IBERIABANK and, as usual, the FDIC was set to pay out these deposits directly to the brokers. CapitalSouth's 10 branches were scheduled to reopen Monday as branches of IBERIABANK. The FDIC estimated the failure of Community Bank of Las Vegas would cost its insurance fund $781.5 million.
The FDIC estimated the cost to its insurance fund from Guaranty's failure would be $3 billion, making it one of the more costly failures in the 2008-2009 crisis. The most costly failure was IndyMac Bank, which cost the FDIC $10.7 billion.
For depositors shopping for high-rate CDs through brokers, it is also important to consider the health of a bank or thrift, since attractive CD rates that are locked in can be lost when an institution fails. Depositors of three of the institutions that failed Friday face this inconvenience. TheStreet.com Ratings issues independent and very conservative financial strength ratings on each of the nation's 8,500 banks and savings and loans. They are available at no charge on the Banks & Thrifts Screener. In addition, the Financial Strength Ratings for 4,000 life, health, annuity, and property/casualty insurers are available on the Insurers & HMOs Screener. TheStreet.com Ratings also provides award-winning stock ratings, which are available on the Stock Ratings Screener. TheStreet.com Ratings was recently ranked the No. 1 independent stock selector during the market meltdown by BNY ConvergEx Group's BNY Jaywalk. -- Written by Philip van Doorn in Jupiter Fla.