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Regulators Close the Doors on Six Community Banks

Six community-based lenders found regulators at their doors Friday evening, preparing to shut down their operations â€" three in Georgia, and one each in Ohio, New Jersey, and Wisconsin. The failures are expected to cost the FDIC some $225 million.


This latest round of closings pushes the FDIC's ""failed-bank tally"":http://www.fdic.gov/bank/individual/failed/banklist.html for the year to 125. There were 140 bank closings in all of 2009. In 2008, there were 25.

The ""FDIC recently reported"":http://dsnews.comarticles/index/fdic-adds-54-problem-banks-to-its-watch-list-2010-08-31 that the names on its so-called ""Problem List"" of banks climbed to 829 at the end of the second quarter of this year â€" the highest it's been since the savings and loan crisis.

""Community & Southern Bank"":http://www.thecsbank.com in Carrollton, Georgia was the acquiring institution of all three Georgia banks that went under Friday: ""The Bank of Ellijay"":http://www.thebankofellijay.com/ in Ellijay, ""First Commerce Community Bank"":http://www.firstccbank.com/ in Douglasville, and ""The Peoples Bank"":http://www.tpbonline.com/ in Winder.


The Bank of Ellijay had two branch offices, deposits of $160.7 million, and assets of $168.8 million.

First Commerce Community Bank also had two branches, with $242.8 million in deposits, and $248.2 million in assets.

The Peoples Bank operated out of 14 branch locations, with deposits of $398.2 million, and assets totaling $447.2 million.

The FDIC and Community & Southern Bank entered into a loss-share transaction on approximately $602.5 million of the failed institutions' assets.

In Milford, Ohio, ""Bramble Savings Bank"":http://www.bramblesavings.com/ was closed. With a single local branch, it had $41.6 million in deposits and assets of $47.5 million. The FDIC brokered a deal with ""Foundation Bank"":http://www.foundationbankus.com in Cincinnati to acquire the failed institution.

""ISN Bank"":http://www.isnbank.com/ in Cherry Hill, New Jersey, had just one branch location, with $79.7 million in deposits, and assets worth $81.6 million. ""New Century Bank"":http://www.customersusabank.com (d.b.a. Customers Bank) out of Phoenixville, Pennsylvania, agreed to step in and take over ISN's operations. The FDIC and New Century Bank agreed to share losses on approximately $64.8 million of ISN's assets.

""Maritime Savings Bank"":http://www.maritimesavings.com/ in West Allis, Wisconsin, was also shut down. ""North Shore Bank, FSB"":http://www.northshorebank.com, of Brookfield, Wisconsin picked up its nine branches, $248.1 million in deposits, and $177.6 million of the failed bank's $350.5 million in assets.

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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