With any type of luck, American Eagle Savings Bank of Boothwyn, PA, could have gone unnoticed by regulators. American Eagle was a speck of a bank with only $19.6 million in total assets, despite the fact that it was one of the oldest banks in the country, having been established in 1917.
The smallest bank closed in 2011 was Rosemount National Bank of Minnesota that had only $37 million in assets.
After surviving depressions, world wars and numerous financial panics, tiny American Eagle Savings Bank was closed today by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. The FDIC sold the failed bank to Capital Bank, N.A., Rockville, MD.
American Eagle had only one branch which will reopen on Saturday as a branch of Capital Bank. Depositors of American Eagle will have continued access to their money by writing checks, ATM or debit cards.
At September 30, 2011, American Eagle Savings Bank had total assets of $19.6 million and total deposits of $17.7 million. Capital Bank, besides assuming all deposits, will purchase all of the assets of American Eagle.
The cost to the FDIC Deposit Insurance Fund for the failure of American Eagle is $3.2 million. American Eagle Savings Bank is the third banking failure of 2012. The last banking failure in Pennsylvania occurred on August 18, 2011 when Public Savings Bank failed.