FDIC Shutters Six More Banks, Total ’09 Failures Hit 130

The Federal Deposit Insurance Corporation announced Friday it shuttered six more banks, bringing total bank failures in 2009 to 130. The FDIC did not report any bank closures a week ago, November 27.

Georgia, which has seen a large share of bank failures this year, saw three banks taken over by regulators Friday.  Those included Buckhead Community Bank, located in Atlanta GA; The Tattnall Bank, in Reidsville GA; and First Security National Bank in Norcross GA.

The FDIC announced that State Bank and Trust Company, located in Macon GA, will assume all deposits of First Security National Bank.  First Security has four branches which will be re-opened as branches of State Bank.  Deposits of First Security will automatically become FDIC insured deposits of State Bank.

Along with assuming the $123 million in deposits, State Bank has agreed to purchase $118 million of the failed bank’s assets from the FDIC.  First Security had total assets of $128 million at the end of September.

State Bank and Trust Company will also assume the deposits of Buckhead Community Bank, totaling $838 million.  It also agreed to purchase basically all of Buckhead’s $874 million in assets.

Heritage Bank of the South, Albany, GA has agreed to assume the $47 million in deposits of The Tattnall Bank and will make them available immediately.  Heritage will also purchase $48.5 million in Tattnall Bank assets of $49.6 million held.

On Saturday, December 5, 2009, the former Tattnall Bank locations will reopen as branches of HeritageBank of the South.

Other banks closing were; Greater Atlantic Bank, located in Reston VA; Benchmark Bank, Aurora IL; and AmTrust Bank, Cleveland, OH.

AmTrust Bank was the largest failure of the six as it held assets and deposits totaling about $20 billion.  New York Community Bank agreed to assume the $8 billion in deposits, while purchasing just $9 billion of $12 billion assets available.

AmTrust Bank has 66 branches located throughout Ohio, Florida and Arizona.  The bank has just over 1,700 employees; its branches will re-open as locations of New York Community Bank.

The FDIC said that Sonabank will acquire the deposits of Greater Atlantic Bank, while MB Financial will take on the $181 million in deposits from Benchmark Bank,