Four More Banks Added to Failed Bank List

On May 14, 2010 the FDIC added four more banks to the growing list of failed banks in 2010. The four banks this week that that had the FDIC appointed as receiver included; Southwest Community Bank in Missouri, New Liberty Bank in Michigan, Satilla Community Bank in Georgia and Midwest Bank and Trust in Illinois. These four banks bring the total number of failures this year to 72.

All four banks had their deposits, with the exceptions of some brokered deposits, transferred to healthy banks. All bank locations of failed institutions will reopen as bank branches of the acquiring banks during regular business hours.

Of the four banks, Midwest Bank and Trust was by the far the largest with almost $2.5 billion in deposits. The other three banks were all single location operations with deposits of approximately $100 to $125 million.

All deposit accounts of Midwest Bank and Trust were transferred to FirstMerit Bank of Akron, OH. Satilla Community Bank had all customer deposit accounts, excluding certain brokered deposits, transferred to Ameris Bank of Moultrie, GA. All deposit accounts of New Liberty Bank, excluding certain brokered deposits, have been transferred to Bank of Ann Arbor of Ann Arbor, MI. Southwest Community Bank had all customer deposit accounts transferred to Simmons First National Bank of Pine Bluff, AR.

Midwest Bank and Trust Company had 23 branches with approximately $3.17 billion in total assets and $2.42 billion in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund will be $216.4 million for this failure. Southwest Community Bank had one bank location and approximately $96.6 million in total assets and $102.5 million in total deposits. The FDIC estimates that the cost of the failure of Southwest Community Bank to be $29.0 million. New Liberty Bank had just one location as well and approximately $109.1 million in total assets and $101.8. The FDIC estimates it will cost $25.0 million reconcile the losses of New Liberty Bank. Satilla Community Bank was a one location bank operation that had approximately $135.7 million in total assets and $134.0 million in total deposits. The FDIC estimates Satilla’s loss to be $31.3 million.

Depositors’ money is insured up to $250,000 per account and is not at risk, with the FDIC insurance fund solvency being guaranteed by the US government.

Tags: bank branches, bank locations, Banks, deposits, failed bank, FDIC

This entry was posted on Saturday, May 15th, 2010 at 10:44 pm and is filed under Money Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.