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Regulators Shut Down Six Community-Based Lenders

State and federal regulators closed six lending institutions over the weekend â€" three in Georgia and one each in Arkansas, Florida, and Minnesota. It brings the number of ""bank failures for the year"":http://www.fdic.gov/bank/individual/failed/banklist.html to 157, and[IMAGE]

follows ""news last week"":http://dsnews.comarticles/fdic-lowers-budget-as-bank-failures-slow-2010-12-17 that the FDIC has lowered its operating budget for 2011 based on the expectation that institutional closings will slow in the year ahead.

The largest of this weekend's closings was the ""Bank of Miami, N.A."":http://www.tibom.com/, headquartered in Coral Gables, Florida. It operated three branch locations in the state, with $374.2 million in deposits and assets totaling $448.2 million. The FDIC brokered a deal with ""1st United Bank"":http://www.1stunitedbankfl.com/ of Boca Raton, Florida, to take over the failed institution's operations.

The FDIC says 1st United did not pay a premium for Bank of Miami's deposits and agreed to purchase approximately $442.3 million of its assets. The FDIC and 1st United Bank entered into a loss-share transaction on $313.5 million of the acquired assets. The FDIC will retain the remaining assets for later disposition. The closing of the Bank of Miami is expected to cost the FDIC $64.0 million.

In Georgia, ""Chestatee State Bank"":http://www.chestateestatebank.com/, based out of Dawsonville, was the largest of the three banks in the state to be shut down. Chestatee had four branch locations, $240.5 million in deposits, and $244.4 million in total assets.

""Bank of the Ozarks"":http://www.bankozarks.com out of Little Rock, Arkansas, agreed to take over the failed bank's operations. It did not pay a premium for the deposits picked up in the transaction and agreed to purchase all of Chestatee's assets. The FDIC and Bank of the Ozarks entered into a loss-share transaction on $195.3 million of the acquired assets. Chestatee State Bank's closing will cost the FDIC an estimated $75.3 million.

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In Atlanta, it was ""United Americas Bank, N.A."":http://www.unitedamericasbank.com/ that found regulators at its doors Friday. Through its two branch locations, United Americas Bank had $193.8 million in total deposits and approximately $242.3 million in assets. ""State Bank and Trust Company"":http://www.statebt.com, headquartered in Macon, Georgia, stepped in to take over the failed institution.

State Bank and Trust did not pay the FDIC a premium for United Americas' deposits and agreed to purchase all of its assets, of which the FDIC agreed to share in future losses on $195.8 million. The Atlanta bank's collapse is expected to cost the FDIC $75.8 million.

""Appalachian Community Bank, F.S.B."":http://www.acbfsb.com/, in McCaysville, Georgia, was also closed. All of the bank's $76.4 million in deposits, excluding certain brokered deposits, have been transferred to ""Peoples Bank of East Tennessee"":http://www.peoplesbank-tn.com, based out of Madisonville, Tennessee. Peoples Bank has reopened Appalachian Community Bank's three branches under its own name and also agreed to purchase $67.5 million of the failed bank's $68.2 million in total assets.

The FDIC says it will retain the remaining assets for later disposition. Peoples Bank paid no premium for the deposits it acquired, and the FDIC agreed to share in the losses on $46.4 million of the assets purchased. The closing of Appalachian Community Bank will cost the FDIC an estimated $26.0 million.

In Batesville, Arkansas, ""First Southern Bank"":http://www.firstsouthernbk.com/ was shut down by regulators. The lender operated two branch offices, with $155.8 million in deposits, and assets totaling $191.8 million. The FDIC reached a deal with ""Southern Bank"":http://www.bankwithsouthern.com/index.html in Poplar Bluff, Missouri to take over the failed bank.

Southern Bank paid the FDIC a premium of 0.25 percent to assume all of the deposits of First Southern Bank, and agreed to purchase approximately $152.8 million of its assets. The FDIC will dispose of the remaining assets at a later date. The federal agency estimates the cost of the Arkansas bank's closing to be $22.8 million.

""Community National Bank"":http://www.cnbanytime.com/ in Lino Lakes, Minnesota, was also shuttered. The two-branch bank had deposits of $28.8 million and assets totaling $31.6 million. ""Farmers & Merchants Savings Bank"":http://www.fmbankia.com out of Manchester, Iowa, agreed to acquire the failed institution.

Farmers & Merchants Savings Bank did not pay the FDIC a premium for the deposits of Community National Bank and will purchase all of the Minnesota bank's assets. The FDIC expects the cost of Community National Bank's closing to come to $3.7 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.
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