By Willy Staley  Updated on Mon Nov 12, 2012

Five Banks Fail, Bring 2012 Total to 38

 

Five banks failed on Friday, bringing the year’s total to 38. Two of the bank failures took place in Georgia, as that state continues to suffer from the fallout from the financial crisis of 2008.

In Chicago, Second Federal Savings and Loan Association of Chicago was closed by federal regulators. The FDIC found Hinsdale Bank & Trust Company, of Hinsdale, Ill. to assume the bank’s $175.9 million in deposits and to purchase $14.2 million of the bank’s $199.1 million in assets. All three of Second Federal Savings’ branches will now operate as Hinsdale Bank & Trust branches.

In Leawood, Kan., state regulators shuttered Heartland Bank. Both of its branches will reopen as branches of Metcalf Bank, which has agreed to assume the failed bank’s $102.6 million in deposits and purchase all $110 million of its assets.

In Florida, state regulators shuttered The Royal Palm Bank of Florida, which was headquartered in Naples. The FDIC entered into an agreement with First National Bank of the Gulf Coast, also of Naples, to assume the $85.1 million in deposits from the failed bank and to purchase all of its $87 million in assets. The Royal Palm Bank had just three branches, all of which will now operate as branches of First National Bank of the Gulf Coast.

In Georgia both Georgia Trust Bank, of Buford, and First Cherokee State Bank, of Woodstock, failed. Community & Southern Bank, of Atlanta, has agreed to assume both bank’s deposits and purchase most of their assets. Georgia Trust Bank was one of the least healthy banks in the nation, boasting a Texas Ratio of 544%.

As is always the case with FDIC-insured bank failures, customers of failed banks should continue to use their old branches, and may begin using the assuming institution’s branches once necessary systems upgrades are completed.

The total cost of all five failures to the Deposit Insurance Fund will be $151.3 million.

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

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