Three Banks Fail in Southeast, Bring Total to 31

Willy Staley

By Willy Staley
Updated on Mon Nov 12, 2012

Three banks failed in the Southeast on Friday, bringing this year’s running total to 31.

The Farmers Bank of Lynchburg, in Lynchburg, Tenn., was closed by state regulators on Friday, who named the FDIC as receiver. The FDIC entered into an agreement with Clayton Bank and Trust, of Knoxville, Tenn., to purchase all $163 million in assets and assume the $156 million in deposits of the failing bank. Clayon Bank paid a 0.10 percent premium to the FDIC for Farmers Bank’s deposits.

Security Exchange Bank, of Marietta, Ga., was shuttered by Georgia bank regulators, and the FDIC made a deal with Fidelity Bank, of Atlanta, to assume all $147 million in deposits and to purchase all $151 million of the failing bank’s assets. Before it was closed, Security Exchange Bank boasted the highest Texas ratio in the nation — it was in trouble.

And Putnam State Bank, of Palatka, Fla., was also closed by state regulators, and FDIC found Harbor Community Bank, of Indiantown, Fla., to take over. Harbor Community Bank agreed to assume all $160 million in dposits and to purchase the $169 million in assets from the failing bank.

As with all FDIC-insured bank failures, customers of failing banks are now customers of the assuming institution, but they should continue to use their old branch. Once systems upgrades are made, customers are welcome to use the branch locations of the assuming institution.

Total cost to the Federal Deposit Insurance Fund for the three failues will be $100 million.

Visit here for the full list of bank failures in 2012.


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