Four More Banks Fail Bringing Year’s Total To 81

The Federal Deposit Insurance Corporation [FDIC] closed four banks on Friday, including that of Texas-based Guaranty Bank, the 10th largest bank to ever fail, bringing the total number of banks to fail in the U.S. to 81 this year.

– ebank of Atlanta, Georgia, was closed today by the Office of Thrift Supervision. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of ebank.

The FDIC said ebank had, as of July 10, ’09, $143 million in assets and $130 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $63 million.

ebank is the 78th bank to fail in the nation this year, and the seventeenth in Georgia. The last bank closed in the state was Security Bank of Jones County, Gray, on July 24, 2009.

– First Coweta of Newnan, Georgia, was closed today by the Georgia Department of Banking and Finance. To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all of the deposits of First Coweta, excluding those from brokers.

The FDIC said First Coweta had, as of July 31, ’09, $167 million in assets and $155 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $48 million.

First Coweta is the 79th bank to fail in the nation this year, and the eighteenth in Georgia. The last bank closed in the state was ebank, Atlanta, earlier today.

– CapitalSouth Bank of Birmingham, Alabama, was closed today by the Alabama State Banking Department. To protect the depositors, the FDIC entered into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all of the deposits of CapitalSouth Bank, excluding those from brokers.

The FDIC said CapitalSouth Bank had, as of June 30, ’09, $617 million in assets and $546 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $151 million.

CapitalSouth Bank is the 80th bank to fail in the nation this year, and the second in Alabama. The last bank closed in the state was Colonial Bank, Montgomery, on August 14, 2009.

– Guaranty Bank of Austin, TX was closed today by the Office of Thrift Supervision. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Banco Bilbao Vizcaya Argentaria SA, Spain’s second-biggest bank. Branches of Guaranty in Texas and California – 103, 59, respectively – tomorrow will become offices of Birmingham, Alabama-based BBVA Compass, the U.S. affiliate of the Spanish bank.

The FDIC said Guaranty Bank had, as of June 30, ’09, $13 billion in assets and $12 billion in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $3 billion.

Guaranty Bank is the 81st bank to fail in the nation this year, and the second in Texas. The last bank closed in the state was Millennium State Bank of Texas, Dallas, July 2, 2009.

Friday’s four closures will cost the FDIC fund $3.262 billion.

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