Updated from 12/17/2010
Updated to include more details on the failures.
First Southern BankWhen the Arkansas State Banking Department shuttered First Southern Bank, Commissioner Candace Franks said the institution's failure was not the result of poor quality loans, but the result of an imprudent business relationship between First Southern Bank and one individual. On Dec. 6, Arkansas Business had reported that the bank was looking to merge with another institution because it had purchased $22 million in potentially fraudulent rural improvement district bonds between December 2008 and September 2010. The FDIC was helping the bank investigate the authenticity of the bonds. First Southern Bank had $191.8 million in total assets when state regulators took over the institution. The FDIC sold the failed bank's $155.8 million in deposits for a 0.25% premium and $152.8 million in assets to Southern Bank of Poplar Bluff, Mo. The agency retained the remaining assets for later disposition. The acquiring bank is the main subsidiary of Southern Missouri Bancorp ( SMBC). The estimated cost of the bank failure to the FDIC's deposit insurance fund was $22.8 million.
Community National BankAlthough Community National Bank had sufficiently high capital ratios as of Sept. 30 to stay off TheStreet's Bank Watch List, it had a very high level of nonperforming loans, and the Office of the Comptroller of the Currency announced that "the bank, by resolution of its board of directors and its shareholders, consented to receivership." The institution had $31.6 million in total assets when it failed.
The FDIC was appointed receiver and arranged for Farmers & Merchants Savings Bank of Manchester, Iowa, to assume the failed institution's assets and deposits. The FDIC estimated the cost of Community National Bank's failure to the deposit insurance fund would be $3.7 million.
The Bank of Miami, NAThe OCC took over The Bank of Miami, which had $448.2 million in total assets. As receiver, the FDIC arranged for 1st United Bank of Boca Raton, Fla. to assume the failed bank's deposits and $442.3 million in assets, with the agency retaining the rest for later disposition. The FDIC agreed to cover 80% of losses on $313.5 million of the assets acquired by 1st United Bank and estimated the cost to the deposit insurance fund would be $64 million. The acquiring bank is the main subsidiary of 1st United Bancorp ( FUBC).
Chestatee State BankThe Georgia Department of Banking and Finance shut down Chestatee State Bank. The FDIC was appointed receiver and sold the failed bank's $244.4 million in assets and all of its deposits to Bank of the Ozarks ( OZRK) of Little Rock, Ark. The FDIC agreed to cover 80% of losses on $195.3 million in acquired assets and estimated the cost of the bank closure to the deposit insurance fund would be $75.3 million.
Appalachian Community Bank, FSBThe Office of Thrift Supervision closed Appalachian Community Bank, FSB and appointed the FDIC receiver. The failed thrift had $68.2 million in assets and $76.4 million in deposits, putting it in a negative capital position. The FDIC arranged for Peoples Bank of East Tennessee to assume most of the failed institution's retail deposits, and was scheduled to mail checks to out-of-state customers with certificates of deposit. Customers with brokered CDs were advised to "contact their broker directly to obtain information on the status of their funds." In addition to the in-state retail deposits, Peoples Bank of East Tennessee purchased $67.5 million of the failed thrift's assets, with the FDIC retaining the rest for later disposition. The agency also agreed to cover 80% of losses on $46.4 million of the acquired assets. The FDIC estimated the failure would cost the deposit insurance fund $26 million.
United Americas Bank, NAThe OCC also took over United Americas Bank, which had $242.3 million in total assets. As receiver, the FDIC arranged for State Bank and Trust Company of Macon, Ga. to assume the failed institution's assets and deposits, with the agency agreeing to share in losses on $195.8 million of the acquired assets. State Bank and Trust Company is the main subsidiary of State Bank Financial (STBZ.PK). The FDIC estimated the cost of United Americas Bank's failure to the deposit insurance fund would be $75.8 million.
Thorough Bank Failure CoverageAll bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map: The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.
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.