With the seven banks seized in the U.S. Friday by regulators, it brought the total for the year to 140, and will cost an estimated $1.8 billion to the FDIC deposit insurance fund, which has been operating in the red already.
The seven banks closed on Friday were spread across six states, with California being the one state which had two bank closings. The total assets of the banks closed on Friday were valued at $14.4 billion, according the the Federal Deposit Insurance Corp. Web site.
California banks closed included Federal Bank of California based in Santa Monica, which was taken over by OneWest Bank of Pasadena. The other was Imperial Capital Bank of La Jolla, California, which was bought out by City National of Los Angeles.
Peoples First of Panama City, Florida, with assets worth $1.8 billion, was taken over by Hancock Bank of Gulfport, Mississippi, with all general deposits (excluding brokered deposits) transferred the new owner, and which will be immediately available to the banks’ customers.
New South Federal based in Irondale, Alabama held assets worth $1.5 billion, and was bought by Beal Bank of Plano, Texas. All deposits have been transferred to the new owner and will be available immediately. All branches will reopen Monday, December 21, 2009 as branches of Beal Bank.
Independent Bankers’ Bank of Springfield, Illinois, RockBridge Commercial of Atlanta, Georgia and Citizens State of New Baltimore, Michigan were all closed, although no buyers were found for them. Independent Bankers’ Bank held assets worth $585.5 million, RockBridge Commercial had $294 million and Citizens State held $168.6 million.
Independent Bankers’ Bank was a commercial bank and so didn’t take in deposits from consumers. Consequently, the FDIC created a bridge bank which took over the operations of Independent Bankers’ Bank, whereby banks which used their services can transfer banking uses to other banks with minimal disruption.
Customers of Citizens State Bank of New Baltimore, Michigan will have to deal with the newly FDIC-created Deposit Insurance National Bank of New Baltimore, where all All insured deposits, CDs, and IRAs have been transferred. They will be available to customers immediately.
Customers of RockBridge Commercial Bank, Atlanta, GA, will receive checks from the FDIC for those deposits which are insured, as there was no buyer found for them either.
At this time, deposits were insured up to $250,000, and up to that amount will be sent to depositors from the FDIC. Other accounts like IRA funds are also insured up to $250,000, and that could be sent to those whom it applies to as well from the FDIC.
