FDIC Friday - June 24, 2011
Posted: Sat Jun 25, 2011 8:05 amMountain Heritage Bank, Clayton, Georgia
As of March 31, 2011, Mountain Heritage Bank had approximately $103.7 million in total assets and $89.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, First American Bank and Trust Company agreed to purchase essentially all of the assets.
The FDIC and First American Bank and Trust Company entered into a loss-share transaction on $69.2 million of Mountain Heritage Bank's assets. First American Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/fai ... index.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $41.1 million. Compared to other alternatives, First American Bank and Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Mountain Heritage Bank is the 48th FDIC-insured institution to fail in the nation this year, and the fourteenth in Georgia. The last FDIC-insured institution closed in the state was McIntosh State Bank, Jackson, on June 17, 2011.
As of March 31, 2011, Mountain Heritage Bank had approximately $103.7 million in total assets and $89.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, First American Bank and Trust Company agreed to purchase essentially all of the assets.
The FDIC and First American Bank and Trust Company entered into a loss-share transaction on $69.2 million of Mountain Heritage Bank's assets. First American Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/fai ... index.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $41.1 million. Compared to other alternatives, First American Bank and Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Mountain Heritage Bank is the 48th FDIC-insured institution to fail in the nation this year, and the fourteenth in Georgia. The last FDIC-insured institution closed in the state was McIntosh State Bank, Jackson, on June 17, 2011.