Regulators Close Five More Banks

AP reported today regulators closed five more banks to bring the total to 38 closures in 2012.

"The failure of Georgia Trust Bank is expected to cost the deposit insurance fund $20.9 million; the failure of First Cherokee State Bank is expected to cost $36.9 million; that of Royal Palm Bank of Florida, $13.5 million; Heartland Bank, $3.1 million; and Second Federal, $76.9 million."

List of banks closed by the Federal Deposit Insurance Corp. (FDIC) on Friday July 20, 2012:

1. Georgia Trust Bank, based in Buford, Ga.
   $119.8 million in assets and $117.4 million in deposits
2. First Cherokee State Bank, based in Woodstock, Ga.
   $222.7 million in assets and $193.3 million in deposits
3. Royal Palm Bank of Florida, based in Naples, Fla.
   $87 million in assets and $85.1 million in deposits.
4. Heartland Bank in Leawood, Kan.
   $110 million in assets and $102.6 million in deposits
5. Second Federal Savings and Loan Association of Chicago
   $199.1 million in assets and $175.9 million in deposits.

See 2012 FDIC List of Failed Banks with press release.

"Atlanta-based Community & Southern Bank agreed to assume the deposits of the Georgia banks and to buy all the assets of First Cherokee State Bank. Community & Southern also is buying about $111.5 million of Georgia Trust Bank's assets.

First National Bank of the Gulf Coast, also based in Naples, agreed to assume all the deposits and essentially all the assets of Royal Palm Bank of Florida.

Metcalf Bank, based in Lees Summit, Mo., agreed to buy the assets and deposits of Heartland Bank.

Hinsdale Bank & Trust Co., based in Hinsdale, Ill., agreed to assume the deposits of Second Federal Savings and Loan Association of Chicago. Hinsdale Bank also is buying about $14.2 million of the bank's assets, comprised mainly of cash. All of Second Federal's loans, including consumer loans and mortgages, will be retained by the FDIC for later sale.

In addition, the FDIC and Community & Southern Bank agreed to share losses on $65.9 million of Georgia Trust Bank's loans and other assets, and on $141.8 million of First Cherokee State Bank's assets.

The agency and Metcalf Bank agreed to share losses on $54.3 million of Heartland Bank's assets."

For more information, see the full FDIC List of Failed Banks.