FDIC Friday - July 6, 2012

[Copper Catcher]

Ameris Bank, Moultrie, Georgia, Assumes All of the Deposits of Montgomery Bank & Trust, Ailey, Georgia

As of March 31, 2012, Montgomery Bank & Trust had approximately $173.6 million in total assets and $164.4 million in total deposits. In addition to assuming all of the deposits of the failed bank, Ameris Bank agreed to purchase approximately $12.4 million in assets, comprised mainly of cash and cash equivalents. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $75.2 million. Compared to other alternatives, Ameris Bank's acquisition was the least costly resolution for the FDIC's DIF. Montgomery Bank & Trust is the 32nd FDIC-insured institution to fail in the nation this year, and the sixth in Georgia. The last FDIC-insured institution closed in the state was Security Exchange Bank, Marietta, on June 15, 2012.

[Rosco]

Are all these banks around Atlanta

Do you think its housing or what is the trigger?

[Copper Catcher]

The number of failed U.S. banks thus far in 2012 to 32. There were 92 bank failures in 2011, 157 in 2010, 140 in 2009 and 25 in 2008.

But, come on, it is all smoke and mirrors at this point. Does anyone really think that the economy in 2012 is improving and that much better than in 2011?

There are a number of issues that continue to haunt the bankers i.e. the glut of homes on the market coupled with depressed home prices and the ever present high loan default rates.

Real unemployment levels are also killing any chances of a decent recovery any time soon in the housing market.

Welcome to the new reality.

[68Camaro]

After 400+ bank failures (and counting) along with all the many consolidations, there aren't that many banks left to fail - by the numbers. The industry is now dominated by a few large banks. The numbers SHOULD be diminishing just because of that, but we can't take much comfort from that for several reasons. 1) I tend to believe there is that ulterior motive behind much of this, even if not fully coordinated, which is to force the smaller banks to fail and merge up. 2) When the big banks do crash and burn (and they will), watch out! They will either require massive government bail-outs (money printing), and/or nationalization, or when they come down they will take down a lot with them.