Jun
25

Total 2009 Bank Failures Rise to 40

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Regulators closed three more community banks, bringing the 2009 failure total to 40. The three failed banks — in North Carolina, Georgia and Kansas — totaled $1.5 billion in assets. The Federal Deposit Insurance Corp. announced deals to protect all their deposits and store most of their assets, but the transactions will cost the agency roughly $363 million combined.

The FDIC said First Bank, in Troy, N.C., agreed to assume virtually all of Cooperative’s $774 million in deposits, less about $57 million in brokered funds that the FDIC will pay directly. The acquirer will also buy roughly $942 million of Cooperative’s assets, agreeing to share in losses with the FDIC on an asset pool of about $852 million. The failure is estimated to cost $217 million to the Deposit Insurance Fund.

In Georgia’s seventh failure this year, the FDIC said United Community paid a one percent premium to assume the $307 million in deposits from Southern Community. United Community also agreed to take over roughly $364 million of the failed bank’s assets. It entered into a loss-sharing deal with the FDIC on $253 million of those assets. The failure is estimated to cost the DIF $114 million.

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