Three Banks Fail; 2012 Tally Hits 31

NEW YORK ( TheStreet) -- Three banks failed on Friday, bringing this year's total number of bank failures to 31.

All three failed banks were previously included in TheStreet's Bank Watch List of undercapitalized institutions, based on regulatory data provided by Thomson Reuters Bank Insight.

Putnam State Bank

The Florida Office of Financial Regulation closed Putnam State Bank of Palatka, which had $165.9 million in total assets and $160 million in deposits. The Federal Deposit Insurance Corp. was appointed receiver, and sold the failed institution's deposits to Harbor Community Bank of Indiantown, Fla.

The FDIC agreed to share in losses on $112.3 million of the assets acquired by Harbor Community Bank, and estimated that the failure of Putnam State Bank would cost the deposit insurance fund $$37.4 million.

Putnam State Bank's three offices were scheduled to reopen during their normal business hours, beginning Saturday.

Security Exchange Bank

State regulators in Georgia shuttered Security Exchange Bank of Marietta, which had total assets of $151.0 million and $147.9 million in deposits. The FDIC was appointed receiver and sold the failed bank to Fidelity Bank of Atlanta.

The FDIC agreed to share in losses on $102.8 million in assets acquired by Fidelity Bank, and estimated that Security Exchange Bank's failure would cost the deposit insurance fund $34.3 million.

The failed bank's two branches were set to reopen Monday as Fidelity Bank branches.

The acquiring bank is a subsidiary of Fidelity Southern Corporation ( LION).

The Farmers Bank of Lynchburg

The Tennessee Department of Financial Institutions shut down The Farmers Bank of Lynchburg. As receiver, the FDIC sold the failed institution's deposits for a 1% premium to Clayton Bank and Trust of Knoxville, Tenn.

Clayton Bank and Trust also agreed to assume the failed bank's assets, and the FDIC estimated the cost of the failure of The Farmers Bank of Lynchburg to the deposit insurance fund would be $28.3 million.

The four branches of The Farmers Bank of Lynchburg -- including one branch operating as First State Bank of Chapel Hill, Tenn., and two branches operating as Oakland Deposit Bank, of Oakland, Tenn. -- were scheduled to reopen during normal business hours, beginning Saturday, as branches of Clayton Bank and Trust.

Thorough Bank Failure Coverage

All previous 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 2008-2011 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.


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

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.