Weekend Economists Repent! The End Is Here! July 20-22, 2012

[Demeter]

1. JACKPOT! 4 BANKS DOWN AT 6:30 PM EDT

The Royal Palm Bank of Florida, Naples, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First National Bank of the Gulf Coast, Naples, Florida, to assume all of the deposits of The Royal Palm Bank of Florida.

The three branches of The Royal Palm Bank of Florida will reopen on Monday as branches of First National Bank of the Gulf Coast...As of March 31, 2012, The Royal Palm Bank of Florida had approximately $87.0 million in total assets and $85.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, First National Bank of the Gulf Coast agreed to purchase essentially all of the failed bank's assets....The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $13.5 million. Compared to other alternatives, First National Bank of the Gulf Coast's acquisition was the least costly resolution for the FDIC's DIF. The Royal Palm Bank of Florida is the 34th FDIC-insured institution to fail in the nation this year, and the fifth in Florida. The last FDIC-insured institution closed in the state was Putnam State Bank, Palatka, on June 15, 2012.


Georgia Trust Bank, Buford, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, Atlanta, Georgia, to assume all of the deposits of Georgia Trust Bank.

The two branches of Georgia Trust Bank will reopen on Monday as branches of Community & Southern Bank...As of March 31, 2012, Georgia Trust Bank had approximately $119.8 million in total assets and $117.4 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of Georgia Trust Bank. In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase approximately $111.5 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Community & Southern Bank entered into a loss-share transaction on $65.9 million of Georgia Trust Bank's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. Georgia Trust Bank is the 35th FDIC-insured institution to fail in the nation this year, and the seventh in Georgia. The last FDIC-insured institution closed in the state was Montgomery Bank & Trust, Ailey, on July 6, 2012.

First Cherokee State Bank, Woodstock, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, Atlanta, Georgia, to assume all of the deposits of First Cherokee State Bank.

The three branches of First Cherokee State Bank will reopen during normal business hours as branches of Community & Southern Bank...As of March 31, 2012, First Cherokee State Bank had approximately $222.7 million in total assets and $193.3 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of First Cherokee State Bank. In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC and Community & Southern Bank entered into a loss-share transaction on $141.8 million of First Cherokee State Bank's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $36.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. First Cherokee State Bank is the 36th FDIC-insured institution to fail in the nation this year, and the eighth in Georgia. The last FDIC-insured institution closed in the state was Georgia Trust Bank, Buford, earlier today.

Heartland Bank, Leawood, Kansas, was closed today by The Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Metcalf Bank, Lees Summit, Missouri, to assume all of the deposits of Heartland Bank.

The two branches of Heartland Bank will reopen during normal business hours as branches of Metcalf Bank...As of March 31, 2012, Heartland Bank had approximately $110.0 million in total assets and $102.6 million in total deposits. Metcalf Bank will pay the FDIC a premium of 1.11 percent to assume all of the deposits of Heartland Bank. In addition to assuming all of the deposits of the failed bank, Metcalf Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC and Metcalf Bank entered into a loss-share transaction on $54.3 million of Heartland Bank's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.1 million. Compared to other alternatives, Metcalf Bank's acquisition was the least costly resolution for the FDIC's DIF. Heartland Bank is the 37th FDIC-insured institution to fail in the nation this year, and the first in Kansas. The last FDIC-insured institution closed in the state was The First National Bank of Olathe, Olathe, on August 12, 2011.