Four More Banks Fail, FDIC

Four more banks shut their doors Friday, according to the FDIC, bringing the total number of failures up to 44 in 2009.

From the FDIC:

Community Bank of West Georgia, Villa Rica, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the Federal Deposit Insurance Corporation (FDIC) will mail checks to insured depositors for their insured funds on Monday morning, June 29th.

As of May 15, 2009, Community Bank of West Georgia had total assets of $199.4 million and total deposits of $182.5 million.

The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $85 million. Community Bank of West Georgia is the 41st FDIC-insured institution to fail in the nation this year, and the eighth in Georgia.

The last FDIC-insured institution to be closed in the state was Southern Community Bank, Fayetteville, on June 19, 2009.

From the FDIC:

Neighborhood Community Bank, Newnan, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

As of March 31, 2009, Neighborhood Community Bank had total assets of $221.6 million and total deposits of approximately $191.3 million. In addition to assuming all of the deposits of the failed bank, CharterBank agreed to purchase approximately $209.6 million of assets.

The FDIC and CharterBank entered into a loss-share transaction on approximately $178.5 million of Neighborhood Community Bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66.7 million. CharterBank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Neighborhood Community Bank is the 42nd FDIC-insured institution to fail in the nation this year, and the ninth in Georgia.

The last FDIC-insured institution to be closed in the state was Community Bank of West Georgia, Villa Rica, earlier today.

From the FDIC:

Horizon Bank, Pine City, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

As of March 31, 2009, Horizon Bank had total assets of $87.6 million and total deposits of approximately $69.4 million. Stearns Bank, N.A. paid a premium of 0.75 percent to acquire all of the deposits of the failed bank. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase approximately $84.4 million of assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $33.5 million. Stearns Bank’s, N.A. acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Horizon Bank is the 43rd FDIC-insured institution to fail in the nation this year, and the first in Minnesota.

The last FDIC-insured institution to be closed in the state was First Integrity Bank, N.A., Staples, on May 30, 2008.

From the FDIC:

MetroPacific Bank, Irvine, California was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of MetroPacific Bank, excluding those from brokers.

As of June 8, 2009, MetroPacific Bank had total assets of $80 million and total deposits of approximately $73million. Sunwest Bank agreed to purchase virtually all of the failed bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $29 million. Sunwest Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. MetroPacific is the 44th FDIC-insured institution to fail in the nation this year, and the fifth in California.

The last FDIC-insured institution to be closed in the state was First Bank of Beverly Hills, Calabasas, on April 24, 2009.

Analysts expect a continuation of small bank-failures even as larger banks stabilize and the overall economy begins to recover.

emphasis added

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