Faster Pace in 2010: FDIC Says Bank Failures at 37

FDICThe Federal Deposit Insurance Corp. reported the failure of 7 more banks this week, bringing this year’s total to 37, representing a pace that will easily surpass last year’s total of 140 bank collapses.
Through the end of March last year, 21 banks had failed.
Crippling loan losses propelled by a still peaking commercial real estate crisis prompted the FDIC to act against banks in Alabama, Georgia, Minnesota, Ohio and Utah.
“We have the capacity and tools necessary to effectively and efficiently handle the expected 2010 level of insured depository institution failures,” said Mitchell L. Glassman, director, Division of Resolutions and Receiverships for the FDIC, in testimony before a House subcommittee in January.
FDIC Chairman Sheila Bair has also said the regulator expects this year’s bank failures to exceed the 2009 tally, which was the highest in nearly two decades.
Advanta Bank Corp., of Draper, Utah, with about $1.6 billion in assets and $1.5 billion in deposits, was the largest failure. And the only bank that wasn’t assumed by another institution, forcing the FDIC to cover accounts up to $250,000. The regulator said checks for those insured deposits would be mailed to account holders on Monday
Advanta is also the only one of the group that has national name recognition. Advanta Corp., of Pennsylvania, is the parent of Advanta Bank. Advanta Corp. filed for bankruptcy protection last November and had to fold its credit-card lending business amid crippling defaults.
Here is the FDIC’s list of this week’s bank failures:

  • State Bank of Aurora, Aurora, MN, with $28.2 million in assets and $27.8 million in deposits was closed. Northern State Bank, Ashland, WI has agreed to assume all deposits.
  • First Lowndes Bank, Fort Deposit, AL, with $137.2 million in assets and $131.1 million in deposits was closed. First Citizens Bank, Luverne, AL has agreed to assume all deposits.
  • Bank of Hiawassee, Hiawassee, GA, with $377.8 million in assets and $339.9 million in deposits was closed. Citizens South Bank, Gastonia, NC has agreed to assume all deposits, excluding certain brokered deposits.
  • Appalachian Community Bank, Ellijay, GA, with $1.01 billion in assets and $917.6 million in deposits was closed. Community & Southern Bank, Carrollton, GA has agreed to assume all deposits.
  • Advanta Bank Corp., Draper, UT, with $1.6 billion in assets and $1.5 billion in deposits was approved for payout by the FDIC Board of Directors.
  • Century Security Bank, Duluth, GA, with $96.5 million in assets and $94.0 million in deposits was closed. Bank of Upson, Thomaston, GA has agreed to assume all deposits, excluding certain brokered deposits.
  • American National Bank, Parma, OH, with $70.3 million in assets and $66.8 million in deposits was closed. The National Bank and Trust Company, Wilmington, OH has agreed to assume all deposits, excluding certain brokered deposits.

One thought on “Faster Pace in 2010: FDIC Says Bank Failures at 37

  • March 25, 2010 at 3:23 pm
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    This is the HOPE and CHANGE you voted for?

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