October 15, 2010 – Security Savings Bank, F.S.B., Olathe, Kansas, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver.  The FDIC sold failed Security Savings Bank to Simmons First National Bank, Pine Bluff, Arkansas, which will assume all deposits and purchase all assets of the failed bank. Security Savings Bank, a nine branch bank, had been [...]

September 17, 2010 – After closing only one bank since August 20th, regulators picked up the pace and closed six banking institutions.  With the recent increase in the number of banks on the FDIC’s “Problem Bank List“, regulators should be busy well into 2011 closing institutions that are considered  “unsafe and unsound”. As of the latest report [...]

September 17, 2010 – Maritime Savings Bank, West Allis, Wisconsin, was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver.  The FDIC sold failed Maritime Bank to North Shore Bank, FSB, Brookfield, Wisconsin, which will assume all the deposits but only about half of the failed bank’s assets. Maritime Savings was one of the Wisconsin’s [...]

September 17, 2010 – The Peoples Bank, Winder, Georgia, was closed today by the Georgia Department of Banking and Finance and the FDIC was named as receiver. The Peoples Bank was acquired by Community & Southern Bank, Carrollton, Georgia under a purchase and assumption agreement with the FDIC.  Community & Southern will assume all deposits and purchase essentially [...]

September 17, 2010 – First Commerce Community Bank, Douglasville, Georgia, was closed today by the Georgia Department of Banking and Finance and the FDIC was named as receiver. First Commerce Bank was acquired by Community & Southern Bank, Carrollton, Georgia under a purchase and assumption agreement with the FDIC.  Community & Southern will assume all deposits [...]

September 17, 2010 – The Bank of Ellijay, Ellijay, Georgia, was closed today by the Georgia Department of Banking and Finance and the FDIC was named as receiver. The Bank of Ellijay was acquired by Community & Southern Bank, Carrollton, Georgia under a purchase and assumption agreement with the FDIC.  Community & Southern will assume all deposits and purchase essentially [...]

When a banking failure occurs, the FDIC’s goal is to protect depositors and seamlessly arrange a transfer of deposits and a sale of assets to a healthy institution.  To enhance the attractiveness of a closed bank to a potential buyer and to reduce the FDIC’s immediate cash needs,  the FDIC has made extensive use of loss-share agreements (LSA) when a failed bank’s [...]

August 12, 2010 – The FDIC warned the insurance industry to properly disclose to consumers that Retained Asset Accounts (RAAs) are generally not insured by the FDIC Deposit Insurance Fund.   Reacting to reports in the media that many customers believe that RAAs are FDIC insured, the FDIC sent a letter to the National Association of Insurance Commissioners, expressing “serious [...]

July 30, 2010 – The Oregon Division of Finance and Corporate Securities closed LibertyBank, Eugene, Oregon, and appointed the FDIC as receiver.  The deposits and a portion of the failed bank’s assets were acquired by Home Federal Bank, Nampa, Idaho, under a purchase and assumption agreement with the FDIC. LibertyBank had 15 branches in Oregon, all of which will reopen [...]

June 22, 2010 – The FDIC Board of Directors extended the Transaction Account Guarantee  (TAG) program six months beyond its original expiration to December 31, 2010.   In addition, the Board approved for an additional extension, if deemed necessary, to December 31, 2011. The TAG program was initiated in October 2008 as part of the Temporary Liquidity Guarantee Program (TLGP) [...]