The FDIC spread out their bank closures last week, starting with LibertyPointe Bank on Thursday, and then following up with Park Avenue Bank, Old Southern Bank and Statewide Bank at the end of the day Friday. These four bring to total bank failures in March to 8, and the 2010 total to 30.
Old Southern Bank, Orlando, FL
Old Southern Bank was closed by the Florida Office of Financial Regulation on Friday, becoming the 5th bank to fail in Florida in 2010. Florida has had the most bank failures so far this year, followed by Illinois, Michigan and Washington, which have all seen 3 banks fail this year.
The bank’s seven branches will reopen today as branches of Centennial Bank of Conway, Arkansas, which will assume all deposits of the failed institution. Depositors can continue to use their normal branches, until Centennial Bank notifies them that they have completed a systems change that will allow them to use all Centennial branches. Old Southern Bank is estimated to have approximately $315.6 million in total assets as of December 2009.
Statewide Bank, Covington, LA
Statewide is the first bank to fail in Louisiana this year, with six branches and an estimated $243.2 million in assets. The banks branches and deposits will be transferred to Home Bank, which will notify depositors when they can start using other Home Bank branches. Until then, customers of Statewide Bank should continue to use their normal banking branch.
Four Failures Put a Dent in the DIF
These two failures, along with the two New York bank failures reported earlier, have cost the Deposit Insurance Fund an estimated $208.2 million dollars. This marks the second week in a row where four banks have failed, following four closures in one day on March 5th.
For more information and to see a complete list of the 2010 bank failures, go to MyBankTracker.com’s Failed Bank List here.