First National Bank, Edinburg, Texas, Closed By Regulators – Largest Bank Failure In Over Three Years

The biggest banking failure of 2013 occurred today in Texas as regulators closed the First National Bank, Edinburg, Texas,   The failed bank becomes the 22nd banking failure of the year and the first in Texas. First National Bank, with $3.1 billion in total assets, is the largest bank failure since May 14, 2010 when Midwest […]

The FDIC Has A $30 Billion Junk Loan Problem

In its capacity as receiver for failed banks, the FDIC is responsible for either selling or winding down the operations of failed banks.  In the vast majority of cases, the FDIC is able to sell a failed bank to a purchaser who agrees to purchase some or all of the assets of the failed institution. […]

Regulators Close Five Banks – Total Losses To FDIC Top $3 Billion

Last week had no bank closings due to the holiday weekend.  Regulators returned to work today, closing five insolvent banks in Florida, Georgia and Michigan.  A total of 39 banks have now failed during 2011. Although the banking industry has recovered from the dark days of the financial crisis due to unprecedented government aid, the […]

Paramount Bank, Farmington Hills, Michigan, Closed By Regulators

December 10, 2010 – Paramount Bank, Farmington Hills, Michigan, a four branch community bank, was closed by the Michigan Office of Financial and Insurance Regulation, which appointed the FDIC as receiver.  Level One Bank of Farmington Hills, Michigan, entered into a purchase and assumption agreement with the FDIC under which it will assume all deposits […]

Tifton Banking Company, Tifton, GA, Closed By Regulators

November 12, 2010 – Tifton Banking Company, Tifton, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. Ameris Bank, Moultrie, Georgia, acquired the failed bank from the FDIC under a purchase and assumption agreement.  Ameris Bank also acquired today another failed bank, Darby Bank & Trust […]

WestBridge Bank and Trust Co, Chesterfield, MO, Closed By Regulators

October 15, 2010 – WestBridge Bank and Trust Company, Chesterfield, Missouri, was closed today by the Missouri Division of Finance.  The FDIC was appointed as receiver and sold the bank to Midland States Bank, Effingham, Illinois, which will assume all deposits and purchase essentially all assets of the failed bank. WestBridge Bank was a small, […]

The Peoples Bank, Winder, Georgia, Closed By State Regulators

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 […]

First Commerce Community Bank, Douglasville, Georgia, Closed By Regulators

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 […]

Bank of Ellijay, Ellijay, Georgia, Fails

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 […]

Is The FDIC Understating The Cost Of Bank Failures?

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 […]