Using cutting edge research, this blog predicts and comments on the probability of failure for the nearly 7000 regulated banks monitored by the Federal Reserve. While most depositors may be protected by the FDIC, the importance of bank survival is still very important to bank clientele with lines of credit, mortgages, loans or other forms of financing. We seek to inform people that they might be at risk.
Friday, September 2, 2011
Sixteenth Ranked Creekside and a Second Georgia Bank Fail
This week Georgia Commerce Bank (3221st) of Atlanta, Georgia, acquired two other Georgia-based banks: CreekSide Bank (16th) of Woodstock and Patriot Bank of Georgia of Cumming (59th). The two banks were of similar size with approximately $102.3 million in total assets at Creekside and $150.8 million at Patriot. Together, this represents a substantial increase, about 62%, in size for Georgia Commerce while adding 3 more physical branches to their network. In order to facilitate the purchase, the FDIC and Georgia Commerce Bank entered into loss-share transactions on $69.2 million in CreekSide Bank assets and $136.2 million of Patriot Bank's. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will total $71.7 million.
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