6 More Closures in What Might be the Final Fed Friday of 2010

If regulator actions around Thanksgiving are any guideline, the approaching two holiday weekends suggest that this week may be the last Fed Friday of the year. This week 3 banks in the Top 40, two of which were in the top 10, were closed by regulators.

United Americas Bank, N.A. finally succumbed to regulators this week. The Atlanta based bank ranked 2nd on the most recent list. United Americas Bank had approximately $242.3 million in total assets and $193.8 million in total deposits was closed. State Bank and Trust Company (336th) of Macon, GA has assumed all deposits. United Americas Bank is the 10th failed bank acquired by State Bank and Trust.

Also among the nation's riskiest banks, 7th ranked The Bank of Miami, N.A. of Coral Gables, FL closed this week. It had approximately $448.2 million in total assets and $374.2 million in total deposits was closed. 1st United Bank (3226th) of Boca Raton, FL has taken over the deposits and branch operations.

23rd ranked Chestatee State Bank of Dawsonville, GA with approximately $244.4 million in total assets and $240.5 million in total deposits was closed. Bank of the Ozarks (3061st) of Little Rock, AR has agreed to assume all deposits. Chestatee State Bank is the 4th bank acquired to be acquired by Bank of the Ozarks. Previously acquired were Horizon Bank, Woodlands Bank, and Unity National Bank raising total assets for the firm to approximately $3.4 billion.

177th ranked, Community National Bank of Lino Lakes, MN with approximately $31.6 million in total assets and $28.8 million in total deposits was closed. Farmers & Merchants Savings Bank (4185th) of Manchester, IA, has agreed to assume all deposits.

First Southern Bank of Batesville, AR with approximately $191.8 million in total assets and $155.8 million in total deposits was closed. Southern Bank (2764th) of Poplar Bluff, MO has agreed to assume nearly all deposits.

The closing of this bank came as something of a surprise to The Bank Blog as it had a ranking well into the thousands. It was recently discovered that First Southern was the victim of a fraudulent purchase of $22 million in fake bonds. With a capitalization rate of about 10% this fraud easily pushed the bank from well capitalized to having negative equity, forcing regulators to take immediate action. It also leaves The Bank Blog asking one very important question: Why would any bank buy one bond or series of bonds totaling such a significant portion of their assets?

An OTS regulated savings bank, Appalachian Community Bank of McCaysville, GA also closed this week. It had approximately $68.2 million in total assets and $76.4 million in total deposits. 1263rd ranked, Peoples Bank of East Tennessee headquartered in Madisonville, TN has agreed to assume all deposits.