First 3 Bank Failures Of 2012 Occur In Florida, Georgia and Pennsylvania

The first bank failures of 2012 occurred today when regulators closed three banks in Florida, Georgia and Pennsylvania.

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.

 

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