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Bank Failure Tally Rises to 10 After Two Weekend Closings

This year's bank failure tally rose to double digits over the weekend with the collapse of two more federally insured institutions.


""FDIC"":http://fdic.gov/ announced the closing of Parkway Bank in Lenoir, North Carolina, and Douglas County Bank in Douglasville, Georgia, bringing the total number of bank closings this year to 10.

""CertusBank, N.A."":http://www.certusbank.com/, of Easley, South Carolina, will assume all of Parkway's estimated $103.7 million in total deposits, FDIC announced. In addition, CertusBank has agreed to purchase $99.2 million of the failed bank's assets, with FDIC retaining the remaining $9.4 million for later disposition.


The estimated cost to the Deposit Insurance Fund is $18.1 million. Parkway Bank is North Carolina's first FDIC institution to fall this year.

In Georgia, ""Hamilton State Bank"":http://www.hamiltonstatebank.com/ (based in Hoschton) has agreed to assume all of Douglas County Bank's $314.3 million in total deposits, paying FDIC a premium of 0.5 percent. In addition, Hamilton agreed to purchase approximately $260.9 million of the failed bank's $316.5 million in assets, leaving the remainder for FDIC.

FDIC also announced a loss-share transaction with Hamilton on $159.2 million of Douglas County Bank's assets. Hamilton will share in the losses on the asset pools covered under the agreement.

FDIC estimates the collapse will cost the Deposit Insurance Fund $86.4 million. Douglas County Bank is the second federally insured institution to collapse in Georgia this year.

As of the end of April last year, 22 FDIC-insured banks had closed. While this year has been slower in terms of bank failures, April has seen the pace pick up, with more than half of the year's closings occurring this month alone.


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