(Updates with second California failure.)
DOW JONES NEWSWIRES
U.S. regulators announced Friday the failure of two Georgia
banks as well as two banks in California, adding more closures to
the states that lead the country in failures this year.
The Federal Deposit Insurance Corp. said Habersham Bank based in
Clarkesville, Ga., and Citizens Bank of Effingham, based in
Springfield, Ga., have closed. The former was acquired by SCBT
Financial Corp. (SCBT) and the latter by Heritage Financial Group
Inc. (HBOS).
Later Friday, the FDIC also announced the failure of Charter Oak
Bank (CHOB) of Napa, Calif., and San Luis Trust Bank FSB (SNLS) of
San Luis Obispo, Calif. The former was acquired by Bank of Marin
Bancorp's (BMRC) banking subsidiary, while First California
Financial Group Inc.'s (FCAL) took over the latter.
The closings bring this year's number of Georgia's bank failures
to six, the most of any state, and California's to three. Colorado,
Florida and Wisconsin have seen two banks fail each. A total of 22
U.S. banks have failed in 2011.
The number of banks that failed last year--157--was the highest
since the savings-and-loan crisis ended in 1992, although the total
assets at those fallen banks was much smaller than the total the
year before.
Habersham Bank had about $387.6 million in total assets and
$339.9 million in total deposits with eight branches as of the end
of last year.
SCBT, the holding company for SCBT NA and the operator of South
Carolina Bank and Trust, agreed to assume all the deposits without
paying a premium and entered a loss-share transaction with the FDIC
on $270.7 million of the assets. Habersham's branches will reopen
at their normal hours starting Saturday as new SCBT locations.
With the takeover, SCBT said it now operates a total of 83
financial centers in Georgia, North Carolina and South Carolina.
The company said it expected the takeover to be immediately
accretive to both earnings per share and tangible book value.
Meanwhile, Citizens Bank of Effingham had about $214.3 million
in total assets and $206.5 million in total deposits and fourth
branches at year's end.
Heritage Financial Group, through its HeritageBank of the South
banking subsidiary, agreed to assume all the deposits, paying a
premium of 1% to the FDIC. It also entered a loss-share transaction
with the FDIC on $158.1 million of the assets. The four branches
will reopen Saturday as HeritageBank locations. Heritage Financial
already operates 16 full-service branch locations and two mortgage
production offices mostly in South Georgia and North Central
Florida.
As for the California bank, Charter Oak had approximately $120.8
million in total assets and $105.3 million in total deposits as of
Dec. 31. Bank of Marin--Bank of Marin Bancorp.'s subsidiary based
in nearby Novato, Calif.--would take over the two branches and all
the deposits of Charter Oak.
The FDIC said it is retaining $28.5 million of the assets for
later disposition.
Finally, the sole branch of San Luis Trust Bank had $332.6
million in total assets and $272.2 million in total deposits by the
end of last year. It will reopen Tuesday as a First California
Bank, the banking brand of First California Financial Group. First
California agreed to assume all the deposits and entered a
loss-share deal with the FDIC on $241.7 million of the assets of
San Luis Trust Bank.
The FDIC estimated that the cost of the failures to the Deposit
Insurance Fund would be $267.6 million total.
Depositors of the failed banks will automatically become
depositors of the new banks and deposits will continue to be
insured by the FDIC.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com