U.S. FDIC shuts down 7 banks, 2010 total now 37

[OhioChick]

Source: Reuters

Fri Mar 19, 2010 7:43pm EDT

WASHINGTON, March 19 (Reuters) - Regulators seized seven more U.S. banks on Friday, as high unemployment and troubled loan portfolios continue to weigh on the sector.

The seven failures, which are estimated to cost the government's deposit insurance fund more than $1 billion, bring the 2010 tally to 37 failed institutions. Last year, 140 banks failed. At this week's frantic pace, 365 banks would be shut down by the end of the year.

The Federal Deposit Insurance Corp said Advanta Bank Corp of Draper, Utah; Appalachian Community Bank of Ellijay, Georgia; Bank of Hiawassee, Hiawasee, Georgia; First Lowndes Bank of Fort Deposit, Alabama; Century Security Bank of Duluth, Georgia; American National Bank of Parma, Ohio; and State Bank of Aurora in Aurora, Minnesota were closed.

Advanta, at $1.6 billion in total assets and $1.5 billion in total deposits, was the largest of the seven, though the FDIC was unable to find a buyer.



Read more: http://www.reuters.com/article/idUSN1917001120100319

---

In case there are more tonight:

http://www.fdic.gov/bank/individual/failed/banklist.html

[neverforget]

1. Busy day plugging holes in the dike......

[UpInArms]

2. Georgia's still leading the pack

Bank Name				City		State	CERT #	Closing Date	Updated Date

State Bank of Aurora			Aurora		MN	8221	March 19, 2010	March 19, 2010
First Lowndes Bank			Fort Deposit	AL	24957	March 19, 2010	March 19, 2010
Bank of Hiawassee			Hiawassee	GA	10054	March 19, 2010	March 19, 2010
Appalachian Community Bank		Ellijay		GA	33989	March 19, 2010	March 19, 2010
Advanta Bank Corp.			Draper		UT	33535	March 19, 2010	March 19, 2010
Century Security Bank			Duluth		GA	58104	March 19, 2010	March 19, 2010
American National Bank			Parma		OH	18806	March 19, 2010	March 19, 2010

[kirby]

9. GA needs a Fed Investigation

Something is very fishy about all these banks in Gingrich land failing and getting an FDIC bailout.

[NC_Nurse]

3. And the winner and defending champion! Georgia does it again!!!

We're number 1! :o

[Grand Taurean]

4. The wrong ones are failing.

[jotsy]

6. Wasn't monopoly supposed to be a just a game?

We're ahead of last year's pace it looks like as well. Not fun for the bulk of us.

[girl gone mad]

5. $1.6 B?

Yikes.

:wow:

[Lars39]

7. "...though the FDIC was unable to find a buyer."

This isn't the first one to not have a buyer, is it? I haven't kept too close a watch on this 'cause it's depressing as hell, but this seems like the first time I've seen that phrase.

[murphyj87]

8. Failed banks etc.

During 2009 and 2010, 163 US banks have failed and NO Canadian banks have failed.

For the month of February 2010, US unemployment was 9.7%, while Canadian unemployment for February 2010 was 8.2%.

100% of Canadians have access to health care that up to 38% them would not be able to get if they were Americans.

[No Elephants]

10. How many banks failed between FDR's legislation and the S & L crisis?

[dixiegrrrrl]

11. Bear in mind that the cost to FDIC is WAY higher than first appears.

Example:
As of December 31, 2009, First Lowndes Bank had approximately $137.2 million in total assets and $131.1 million in total deposits.

Most people would assume that by subtracting the deposits of 131.1 mil from the
assets ( debt) of 137.2 mil, the " loss" would be 6.1 million.

Not so.

"The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $38.3 million."

Why?
Because the FDIC buys the "losses" ( the bad loans) at FACE value..at mark to market.!

This is why the FDIC is "going broke".

To find the real story of the losses, you have to read the linked reports on each bank.
To do that, you go to the failed bank list,
http://www.fdic.gov/bank/individual/failed/banklist.html

click on the bank, it opens to another page,
the 2nd section of THAT page is labeled Press Release,
you have to click on that to get a THIRD page,
go the bottom paragraph...."The FDIC estimates that the cost to the Deposit Insurance Fund (DIF)"

to read the truth.
They do not make it easy.

So, these 7 closures cost a total of .....

State Bank of Aurora, Aurora, MN..........................4.1 million
Lowndes Bank, Fort Deposit, Alabama.................38.3 million.
Bank of Hiawassee, Hiawassee, Georgia.............137.7 million.
Appalachian Community Bank, Ellijay, GA..........419.3 million.
Advanta Bank Corp., Draper, UT.......................unknown, bank could not find buyer.
Century Security Bank, Duluth, GA.......................29.9 million
American National Bank, Parma, OH..................17.1 million.

Total cost to FDIC.............................................646.4 million

[lonestarnot]

12. woopsie.