Four Banks Fail; 2011 Total at 7

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).

CommunitySouth Bank & Trust's six offices were scheduled to reopen Saturday as branches of CertusBank.

The FDIC agreed to cover 80% of losses on $211.3 million of assets acquired by CertusBank and estimated that the cost to the deposit insurance fund from CommunitySouth Bank & Trust's failure would be $46.3 million.

The Bank of Asheville

The North Carolina Office of Commissioner of Banks closed The Bank of Asheville. The FDIC was appointed receiver and arranged for First Bank of Troy, N.C. to assume the failed institution's $195.1 million in total assets and $188.3 million in total deposits.

First Bank is the main subsidiary of First Bancorp ( FBNC).

The failed bank's five branches were to reopen Monday as branches of First Bank. The FDIC agreed to share in losses on $166.3 million of the acquired assets and estimated the cost to the deposit insurance fund from The Bank of Asheville's failure would be $56.2 million.

United Western Bank

The Office of Thrift Supervision closed United Western Bank of Denver, Colo., which was held by United Western Bancorp ( UWBK) and had $2.05 billion in total assets, making it the largest bank failure since ShoreBank of Chicago failed in August.

The FDIC was appointed receiver and arranged for First-Citizens Bank & Trust Company of Raleigh, N.C. to assume the failed bank's assets and its total deposits of $1.65 billion. First Citizens is the main subsidiary of First Citizens Bancshares ( FCNCA).

The FDIC agreed to share in 80% of losses on $1.11 billion in assets acquired by First-Citizens.

United Western Bank had entered into a cease and desist order with the OTS on June 25, ordering the bank to stop any activity related to "the unsafe or unsound practices that resulted in deteriorating asset quality, ineffective risk management practices, inadequate oversight and supervision of the lending function, and inadequate liquidity planning." The institution was also required to raise sufficient capital to bring its total risk-based capital ratio to 12% by June 30.

United Western was unable to raise the required capital and by Sept. 30, was undercapitalized with a total risk-based capital below 8%.

United Western Bank's eight branches were scheduled to reopen Monday as branches of First-Citizens Bank & Trust. The FDIC said the failure would cost the deposit insurance fund $312.8 million.

Thorough Bank Failure Coverage

All 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.

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-- Written by Philip van Doorn in Jupiter, Fla.

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