2009 Bank Failures Hit 140 As Seven More Close; FDIC Unable To Find Buyers For All

The Federal Deposit Insurance Corporation (FDIC) announced Friday it was named receiver of seven more banks that were shutdown by the Office of Thrift Supervision (OTS).  The closures now bring the 2009 failed bank list to 140.

Georgia, which continues to lead the country in bank failures, saw RockBridge Commercial Bank, in Atlanta GA, shutdown.  However, what makes this closure interesting is the FDIC’s inability to find an acquiring financial institution for the failed banks deposits and assets.

The FDIC will instead will be mailing checks to depositors for the amount of principal and interest on all insured accounts, as of December 18, 2009.  Accounts are insured up to $250,000, but the FDIC said some different types of accounts may be insured for more than that amount.  IRA funds are treated separately from customers’ other accounts and are insured up to $250,000 as well.

The FDIC is advising any customers holding accounts in excess of $250,000 to contact their offices at 1-800-405-1604 and speak with a claims agent as they are reviewing those circumstances on a case by case basis.

Other banks failing were; First Federal Bank of California in Santa Monica CA and Imperial Capital Bank in La Jolla, CA.  First Federal’s deposits are being assumed by OneWest Bank and will be reopened with the OneWest name on Saturday, December 19.   The bank is also taking on $5.3 billion in First Federal assets.   Imperial Bank’s deposits were taken over by City National Bank, based in Los Angeles, CA.

Elsewhere, Florida saw Peoples First Community Bank in Panama City, FL closed by regulators.  Assets and deposits of the bank are being assumed by Hancock Bank, based in Gulfport MS.

Citizens State Bank in New Baltimore, MI was also shutdown Friday.  The FDIC created the Deposit Insurance National Bank of New Baltimore to facilitate the resolution of Citizens State Bank.

The FDIC had to make a similar move for Independent Bankers’ Bank in Springfield, IL.  Independent Bankers’ Bridge Bank, N.A. was created to allow customers to transition their banking needs to other institutions.

New South Federal Savings, in Irondale, AL rounds out the bank closures for Friday.  Beal Bank in Plano, TX will assume all deposits of New South and reopen the branches on Monday with the Beal name.