US Regulators Close Banks In Florida, Georgia

U.S. regulators closed banks in Florida and Georgia on Friday, as smaller banks continue to struggle amid an uneven economic recovery.

The Federal Deposit Insurance Corp. said The Bank of Miami, Chestatee State Bank, and Appalachian Community Bank were all shuttered by regulators on Friday evening. The failures bring to 154 the total number of banks closed this year.

The Bank of Miami, based in Coral Gables, Fla., had approximately $448.2 million in total assets and deposits of $374.2 million as of Sept. 30. The agency said 1st United Bank (FUBC) agreed to purchase the failed bank's deposits, as well as a significant portion of its assets. The failure is expected to cost the FDIC $64 million.

The FDIC said Chestatee State Bank's deposits, as well as nearly all of its assets, were purchased by Little Rock, Ark.-based Bank of the Ozarks (OZRK). Chestatee State Bank, which was headquartered in Dawsonville, Ga., had approximately $244.4 million in assets and $240.5 million in deposits at the end of September. The FDIC estimates the closing will cost its deposit insurance fund $75.3 million.

The Office of Thrift Supervision said McCaysville, Ga.-based Appalachian Community Bank was "critically undercapitalized" at the time of its closing. The bank, which had started operations in 2007 and had just two branches, had $68.2 million in assets and $76.4 million in deposits as of Sept. 30. Peoples Bank of East Tennessee purchased the failed bank's deposits, as well as a significant portion of its assets.

-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com

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