Bank failure list tops 45

The FDIC says banks in Georgia, Minnesota and California were shuttered by state regulators.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Ben Rooney, staff writer

Where the banks are failing
Bank failures and foreclosures keep mounting

NEW YORK ( -- Local banks in Georgia, Minnesota and California were closed Friday by state regulators, bringing the total number of failed banks this year to 45, according to the Federal Deposit Insurance Corporation.

The financial crisis has taken a heavy toll on small banks across the nation as losses in the housing market mount and unemployment dents household wealth. Analysts expect the trend to continue even as larger banks stabilize and the overall economy begins to recover.

Community Bank of West Georgia, which operated one branch in Villa Rica and another in Kennesaw, had total assets of $199.4 million and total deposits of $182.5 million, according to the FDIC.

The failed bank had roughly $1.1 million in deposits that exceeded the FDIC's $250,000 insurance limit for individual accounts. However, this amount is expected to change as the agency obtains more information from uninsured customers, the FDIC said.

The FDIC will mail checks to insured depositors of the failed bank on Monday morning. Direct deposits from the federal government, such as Social Security and Veterans' payments, will be transferred to United Community Bank of Blairsville, Ga.

Georgia regulators also shuttered the four branches of Neighborhood Community Bank, which is based in Newnan.

The FDIC said CharterBank of West Point will assume all of the failed bank's $191.3 million deposits and the majority of its $221.6 million assets.

So far this year, nine banks in Georgia have failed.

In Minnesota, Horizon Bank of Pine City was closed and will be taken over by Stearns Bank, NA of St. Cloud. It was the first bank to fail in the Gopher State this year.

The failed bank, which operated two locations, had total assets of $87.6 million and total deposits of about $69.4 million. Stearns Bank paid a premium for all of Horizon Bank's deposits and agreed to acquire $84.4 million of its assets. The remaining assets will be sold by the FDIC later.

Meanwhile, the sole branch of Irvine, Calif.-based MetroPacific Bank was closed Friday and Sunwest Bank, of Tustin, Calif., agreed to assume all of its non-brokered deposits.

MetroPacific had total deposits of approximately $73 million. Sunwest Bank will purchase nearly all of the failed bank's $80 million worth of assets, the FDIC said.

The FDIC said it would pay about $6 million directly to brokers for deposits held in MetroPacific brokered accounts.

Later Friday, the FDIC said Mirae Bank of Los Angeles was closed. The bank's five offices will reopen Monday as branches of Wilshire State Bank. Mirae Bank had total assets of $456 million and total deposits of approximately $362 million.

Wilshire State Bank will buy about $449 million of the failed bank's assets. The FDIC will hold the remaining assets to dispose of later.

California has had six banks fail so far this year.

The FDIC said it entered a loss-share agreement with the acquiring banks for a portion of the failed banks' assets. The agreement is intended to maximize returns on the assets and minimize disruptions for loan customers, the FDIC said.

The total cost of Friday's bank failures to the FDIC is $264.2 million, bringing the total for this year to $11.94 billion. That compares with $17.6 billion in all of 2008.

The number of bank failures so far this year has already exceeded last year's total of 25, with an average of 7 failures per month.

Over the next 5 years, the FDIC expects roughly $70 billion in losses due to the failures of insured institutions.

The FDIC, which is funded primarily by fees paid by banks, insures individual deposits up to $250,000. The amount was increased from $100,000 late last year in response to concerns about the stability of the nation's banks. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.