UPDATE: Regulators Close Four Banks; 2012 Tally Climbs To Seven
January 27 2012 - 7:07PM
Dow Jones News
Regulators closed four more banks in the U.S. Friday, raising
the nationwide tally of failures so far in 2012 to seven, according
to the Federal Deposit Insurance Corp.
In Florida, First Guaranty Bank and Trust Co. of Jacksonville
was closed by the state's office of financial regulation.
CenterState Bank of Florida NA, in Winter Haven, Fla., will assume
its deposits, the FDIC said.
As of Sept. 30, First Guaranty Bank and Trust had about $377.9
million in total assets and $349.5 million in total deposits. The
FDIC estimates the cost to the Deposit Insurance Fund will be $82
million.
Tennessee's department of financial institutions closed
Tennessee Commerce Bank, of Franklin, Tenn., allowing Republic Bank
& Trust Co. of Louisville, Ky., to assume the deposits.
Tennessee Commerce Bancorp Inc. (TNCC) operates as the
bank-holding company for Tennessee Commerce Bank. Its shares were
halted after hours.
As of Sept. 30, Tennessee Commerce Bank had about $1.19 billion
in total assets and $1.16 billion in total deposits. The FDIC
estimates the cost to the Deposit Insurance Fund will be $416.8
million.
Tennessee regulators also closed Knoxville's BankEast. A unit of
U.S. Bancorp (USB) agreed to acquire the failed bank and its 10
branches. U.S. Bank will assume BankEast's deposits and essentially
all its assets.
BankEast had about $272.6 million in total assets and $268.8
million in total deposits at the end of September. The failure is
expected to cost the Deposit Insurance Fund about $75.6
million.
In Forest Lake, Minn., Patriot Bank Minnesota was closed by the
state department of commerce. First Resource Bank of Savage, Minn.
agreed to assume all the failed bank's deposits and will buy
essentially all its assets.
Patriot Bank Minnesota had about $111.3 million in total assets
and $108.3 million in total deposits at the end of September. That
failure is expected to cost the fund $32.6 million.
The failures added to the hundreds of banks that have collapsed
since the end of 2007 after the housing-sector bust and the
financial crisis. In 2011, there were 92 failures, sharply lower
than the 157 banks that failed in 2010.
-By Jeff Bater and Drew FitzGerald, Dow Jones Newswires; 202 862
9249; jeff.bater@dowjones.com
--Joan E. Solsman contributed to this article.
US Bancorp (NYSE:USB)
Historical Stock Chart
From Aug 2024 to Sep 2024
US Bancorp (NYSE:USB)
Historical Stock Chart
From Sep 2023 to Sep 2024