Regulators closed two banks in Minnesota and Georgia, bringing the total number of banking failures for the year to eleven. A total of four bank failures have now occurred in Minnesota and Georgia. During all of 2011 a total of only two banks failed in Minnesota. Georgia had a total of 23 bank failures during 2011, the most of any state and accounting for 25% of the 92 bank failures seen during 2011.
Some notable aspects of this weeks banking failures are as follows:
The two banks that failed this week had total assets of $713 million and resulted in losses of $106.3 million to the FDIC Deposit Insurance Fund.
Total losses to the FDIC Deposit Insurance Fund topped $1.0 billion after the latest two bank failures.
The FDIC was unable to find a buyer for a failed bank in Minnesota and as a result was forced to payoff depositors and retain all of the assets of the failed bank for later disposition.
Please click on the link for detailed information on each bank closing.
Bank Failure #10 – Central Bank of Georgia, Ellaville, GA
This 102 year old bank was one of the oldest banks in the country and had survived wars, financial panics and depressions. Central Bank was a small sized bank with only $278.9 million in total assets. The FDIC sold Central Bank to Ameris Bank which still owes the U.S. Treasury $52 million under the emergency TARP bailout program. Ameris Bank has now purchased a total of 9 failed banks.
Bank Failures #11 – Home Savings of America, Little Falls, MN
Home Savings of America has a long history, having been established in 1934. The Bank decided to aggressively expand lending during the biggest real estate bubble in US history and today, it wound up paying the price.
The FDIC was unable to find a buyer for failed Home Savings of America and was forced to retain $434.1 million of dubious quality assets for later disposition. The FDIC will mail checks on Monday to all depositors with balances up to the deposit insurance limit of $250,000. The FDIC did not disclose how much money would be lost by depositors with balances above the FDIC insurance limits.