The FDIC took three community banks into receivership on Friday, giving them the distinction of being the first three banks to fail in the new year. First State Bank of Stockbridge, GA, Central Florida State Bank of Belleview, FL, and American Eagle Savings Bank of Boothwyn, PA were all shuttered last week. While Florida and Georgia don’t come as a surprise, Pennsylvania is more unusual; the Keystone state has only had five failed banks since the 2008 credit crisis.
In Stockbridge, GA, the Georgia Department of Banking and Finance brought in the FDIC to handle First State Bank’s failure. The bank had seven branches and assets of $536.9 million, making it the largest failure of the lot. The FDIC made an agreement with Hamilton State Bank of Hoschton, GA to assume the deposits of First State Bank, as well as “essentially all the assets.” The FDIC estimates that the cost to the Deposit Insurance Fund will be $216.2 million.
In Belleview, FL, the Florida Office of Financial Regulation brought in the FDIC to be receiver for Central Florida State Bank. The small community bank had just four branches in the area and assets of $79.1 million, according to recent estimates. CenterState Bank of nearby Winter Haven, FL, will assume all the deposits of the failing institution and will be purchasing the assets as well. Estimated cost the DIF will be $24.2 million, according to the FDIC.
And finally in Boothwyn, PA, regulators shuttered American Eagle Savings Bank, a small local institution with just one branch and $19.6 million in assets. The bank’s deposits will be assumed, and most assets purchased by Capital Bank, NA, of Rockville, MD. Cost to the DIF is estimated to be $3.2 million.
As is the case with most FDIC-insured bank failures, customers should continue to do banking with their old bank’s branches until notified of systems upgrades by the assuming institutions, after which point they can use their new bank’s branches as well.
We will have a 2012 bank failure map and list coming soon.
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