Home / News / Government / Year’s Bank Failures Rise to 61 as Regulators Close Three More
Print This Post Print This Post

Year’s Bank Failures Rise to 61 as Regulators Close Three More

Federal and state regulators shut down three more community-based lenders over the weekend in Indiana, South Carolina, and Virginia.

With this latest round of closings, the ""FDIC's failed-bank list"":http://www.fdic.gov/bank/individual/failed/banklist.html has grown to 61 for the 2011 calendar year.

[IMAGE]

""Integra Bank, N.A."":http://www.integrabank.com in Evansville, Indiana, was the largest of this weekend’s seizures. It operated 52 branches with $1.9 billion in deposits and assets totaling $2.2 billion.

The FDIC brokered a deal with ""Old National Bank"":http://www.oldnational.com, also headquartered in Evansville, to assume all of the deposits of Integra Bank for a premium of 1.0 percent and to purchases all of its assets.

The FDIC and Old National Bank entered into a loss-share transaction on $1.2 billion of the acquired assets. Integra

[COLUMN_BREAK]

Bank’s failure is expected to cost the federal agency $170.7 million. It’s the first institution in Indiana to go under this year.

In Columbia, South Carolina, it was ""BankMeridian, N.A."":http://www.bank-meridian.com/ that found regulators at its doors Friday evening. BankMeridian had three branch offices, $215.5 million in deposits, and $239.8 million in assets.

""SCBT, N.A."":http://www.scbtonline.com/, based out of Orangeburg, South Carolina, agreed to take over the failed lender, with the FDIC consenting to share in future losses on $179.0 million of BankMeridian’s assets.

According to a statement from SCBT, the loss sharing agreement covers “substantially all of the acquired loans and foreclosed real estate.”

The FDIC says BankMeridian's closing will cost it an estimated $65.4 million. It's the third seizure of a South Carolina insured lender this year.

""Virginia Business Bank"":http://www.vabusinessbank.com/ in Richmond was also shuttered. With a single branch location, the lender had $85.0 million in total deposits, and $95.8 million in assets.

The FDIC reached an agreement with ""Xenith Bank"":http://www.xenithbank.com, also in Richmond, to assume the deposits and purchase all of the failed bank’s assets. No loss-share arrangement was included in the deal.

It’s the first Virginia failure this year. The cost to the FDIC's insurance fund is expected to be $17.3 million.

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.
x

Check Also

Trump’s Pick for Federal Reserve Board Questioned During Hearing

The former economic advisor to the president reportedly has “unorthodox” beliefs on the monetary system. What did Republican lawmakers have to say about her nomination?

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.