FDIC Friday! ~ July 20, 2012 ~ Huge Day ~ Five Banks Fail!

[Copper Catcher]

First National Bank of the Gulf Coast, Naples, Florida, Assumes All of the Deposits of the Royal Palm Bank of Florida, Naples, Florida

As of March 31, 2012, The Royal Palm Bank of Florida had approximately $87.0 million in total assets and $85.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, First National Bank of the Gulf Coast agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $13.5 million. Compared to other alternatives, First National Bank of the Gulf Coast's acquisition was the least costly resolution for the FDIC's DIF. The Royal Palm Bank of Florida is the 34th FDIC-insured institution to fail in the nation this year, and the fifth in Florida. The last FDIC-insured institution closed in the state was Putnam State Bank, Palatka, on June 15, 2012.

Community & Southern Bank, Atlanta, Georgia, Assumes All of the Deposits of Georgia Trust Bank, Buford, Georgia

As of March 31, 2012, Georgia Trust Bank had approximately $119.8 million in total assets and $117.4 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of Georgia Trust Bank. In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase approximately $111.5 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. Georgia Trust Bank is the 35th FDIC-insured institution to fail in the nation this year, and the seventh in Georgia. The last FDIC-insured institution closed in the state was Montgomery Bank & Trust, Ailey, on July 6, 2012.

Community & Southern Bank, Atlanta, Georgia, Assumes All of the Deposits of First Cherokee State Bank, Woodstock, Georgia

As of March 31, 2012, First Cherokee State Bank had approximately $222.7 million in total assets and $193.3 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of First Cherokee State Bank. In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC and Community & Southern Bank entered into a loss-share transaction on $141.8 million of First Cherokee State Bank's assets. Community & Southern Bank will share in the losses on the asset pools covered under the loss-share agreement.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $36.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. First Cherokee State Bank is the 36th FDIC-insured institution to fail in the nation this year, and the eighth in Georgia. The last FDIC-insured institution closed in the state was Georgia Trust Bank, Buford, earlier today.

Metcalf Bank, Lees Summit, Missouri, Assumes All of the Deposits of Heartland Bank, Leawood, Kansas

As of March 31, 2012, Heartland Bank had approximately $110.0 million in total assets and $102.6 million in total deposits. Metcalf Bank will pay the FDIC a premium of 1.11 percent to assume all of the deposits of Heartland Bank. In addition to assuming all of the deposits of the failed bank, Metcalf Bank agreed to purchase essentially all of the failed bank's assets.
The FDIC and Metcalf Bank entered into a loss-share transaction on $54.3 million of Heartland Bank's assets. Metcalf Bank 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 FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.1 million. Compared to other alternatives, Metcalf Bank's acquisition was the least costly resolution for the FDIC's DIF. Heartland Bank is the 37th FDIC-insured institution to fail in the nation this year, and the first in Kansas. The last FDIC-insured institution closed in the state was The First National Bank of Olathe, Olathe, on August 12, 2011.

Hinsdale Bank & Trust Company, Hinsdale, Illinois, Assumes All of the Deposits of Second Federal Savings and Loan Association of Chicago, Chicago, Illinois

As of March 31, 2012, Second Federal Savings and Loan Association of Chicago had approximately $199.1 million in total assets and $175.9 million in total deposits. Hinsdale Bank & Trust Bank will pay the FDIC a premium of $100,000 to assume all of the deposits of the failed bank. In addition to assuming all of the deposits, Hinsdale Bank & Trust Company agreed to purchase approximately $14.2 million in assets, comprised mainly of cash. All loans, including consumer and mortgage, will be retained by the FDIC for later disposition. Loan customers should continue to make their payments as usual.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $76.9 million. Compared to other alternatives, Hinsdale Bank & Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Second Federal Savings and Loan Association of Chicago is the 38th FDIC-insured institution to fail in the nation this year, and the fifth in Chicago. The last FDIC-insured institution closed in the state was Farmers' and Traders' State Bank, Shabbona, on June 8, 2012.

[silverbullusa]

CC,

Great job putting all this together. Very informative !!!!

[Numis Pam]

CC,

Great job putting all this together. Very informative !!!!

+1

[shinnosuke]

What would be interesting to see is how long after one bank assumed the assets of a failed bank that it also had to liquidate and disappear. I wonder if there are any recent cases of that.

[avidbrandy]

Sir you need to stop posting these. CNN and Fox News think these are obviously not newsworthy, so you know they're not.