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Regulators Shut Down Six Community Banks

Already the number of regional bank failures has begun to mount, with regulators stepping in to close the doors on six institutions over the weekend â€" two in Georgia and one each in California, Florida, Minnesota, and Washington. Just one month into the year, and the number of 2010 bank collapses sits at 15.


Georgia was home to the most institutional closings last year, and the hits just keep on coming for the state. ""First National Bank of Georgia"":http://www.fnbga.com in Carrollton was closed Friday evening by the Office of the Comptroller of the Currency (OCC). The FDIC brokered a deal with ""Community & Southern Bank"":http://www.fnbga.com/letter.htm, a newly chartered institution also located in Carrollton, Georgia, to take over the failed bank's 11 branches and its $757.9 million in deposits, as well as purchase ""essentially all"" of its $832.6 million in assets. The FDIC says the closure will cost it an estimated $260.4 million.

Also in Georgia, ""Community Bank and Trust"":http://www.corebanking.net in Cornelia was shuttered by state banking regulators. ""South Carolina Bank and Trust"":http://www.scbtonline.com (SCBT), N.A. of Orangeburg, South Carolina agreed to acquire the failed bank's 36 branch offices, its $1.11 billion in deposits, and all of its $1.21 billion in assets. The FDIC estimates the cost to its deposit insurance fund will be $354.5 million.


Los Angeles' ""First Regional Bank"":https://www.firstregional.com was also seized by state regulators. The institution had $1.87 billion in deposits, $2.18 billion in assets, and eight branches. It was acquired by ""First-Citizens Bank & Trust Company"":http://www.firstcitizens.com of Raleigh, North Carolina. The unwinding of the California bank is expected to cost the FDIC an estimated $825.5 million.

""Florida Community Bank"":http://www.floridacommunitybank.net in Immokalee, Florida was shuttered, and acquired by Premier American Bank, N.A. of Miami. It's the ""second failed bank purchase by Premier"":http://dsnews.comarticles/regulators-seize-control-of-five-community-banks-2010-01-25 in as many weeks. The charter for Premier was awarded by the OCC to a group of investors for the sole purpose of acquiring collapsed institutions. This latest acquisition gives the new entity $795.5 million in deposits, $499.1 million in loan assets, and 11 more bank branches. As part of the deal, the FDIC will acquire an equity appreciation instrument. Florida Community Bank's closure is expected to cost the federal agency $352.6 million.

""Marshall Bank, N.A."":http://www.marshall-bank.com in Hallock, Minnesota was shut down by federal regulators. The bank had three branches, $54.7 million in total deposits, and approximately $59.9 million in assets. ""United Valley Bank"":http://www.uvbank.net in Cavalier, North Dakota, agreed to take over the failed bank's operations and purchase all of its assets. The FDIC estimates Marshall Bank's closure will cost it $4.1 million.

American Marine Bank in Bainbridge Island, Washington had its doors closed. The bank's 11 branches, $308.5 million in deposits, and $373.2 million in assets were acquired by Columbia State Bank of Tacoma, Washington. American Marine's failure is expected to cost the FDIC another $58.9 million.

The FDIC agreed to share losses on a portion of the loans acquired in each of the six transactions â€" an added incentive that has become almost commonplace for the FDIC in order to sweeten the deal for those institutions willing to pick up the pieces of broken banks.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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