FDIC Friday: Banks in Georgia, North Carolina, Kansas Closed by Regulators
June 20th, 2009Via: Bloomberg:
Banks in Georgia, North Carolina and Kansas with total assets of $1.5 billion were closed yesterday, bringing this year’s tally of failures in the U.S. to 40 amid the highest unemployment in a quarter century.
State regulators shut Southern Community bank of Fayetteville, Georgia and Cooperative Bank in Wilmington, North Carolina. The Office of the Comptroller of the Currency closed First National Bank of Anthony, Kansas. The Federal Deposit Insurance Corp. was named as receiver for all three, according to statements from the FDIC.
Southern Community’s $307 million in deposits were bought by United Community Bank of Blairsville, Georgia, and most of Cooperative’s $774 million in deposits went to First Bank in Troy, North Carolina, the FDIC said. Bank of Kansas in South Hutchinson acquired First Bank’s $142.5 million in deposits. The acquiring banks are taking over a combined $1.47 billion in assets, mostly loans, from the failed institutions, and signed agreements with the FDIC to share more than 80 percent of the losses with the government.
“The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector,” the FDIC said in each statement. “The agreement also is expected to minimize disruptions for loan customers.”
Regulators this year have closed the most banks since 1993, as the loss of jobs contributes to mounting home foreclosures and loan delinquencies. The U.S. economy contracted at a 5.7 percent annual pace in the first quarter. More than a quarter of all states have unemployment rates higher than 10 percent, the Labor Department said yesterday.
