Florida and Georgia are continuing a trend from last year when they accounted for almost 40% of the nation’s 92 banking failures. Georgia had 23 bank failures in 2011 followed by Florida with 13 bank failures. Today’s three failed banks had total assets of $635.6 million and resulted in losses to the FDIC Deposit Insurance Fund of $243.8 million.
The three failed banks for the week ending January 20, 2012 are listed below. Please click on the link for detailed information on each bank closing.
Banking Failure # 1 – Central Florida State Bank, FL
Central Florida State Bank has the dubious distinction of being the first banking failure of 2012. The failed bank was relatively small with only $79.1 million in total assets. Shareholders of the failed bank saw their shares close today at 17 cents after trading as high as $15 in 2007.
Banking Failure #2 – The First State Bank, GA
The First State Bank was a large community bank with assets of $536.9 million. Regulators appeared to take their time closing down this insolvent bank whose balance sheet was devastated by bad loans. The loss to the FDIC Deposit Insurance Fund was a very substantial $216.2 million, representing 40% of the failed bank’s total assets.
Banking Failure #3 – American Eagle Savings Bank, PA
American Eagle Savings Bank was a speck of a bank, with total assets less than what some executives at the “too big to fail banks” make in a year. The failed bank was one of the oldest in the country, having been established in 1917.