Number Four and Two Other Top Forties Fail

Our highest ranked failure of the week belongs to number four Farmers and Traders State Bank, of Shabbona, Illinois. It was closed today by the Illinois Department of Financial and Professional Regulation. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank (3448th) of Mendota, Illinois, to assume the $42.3 million in total deposits of the former bank. In addition to assuming all of the deposits, First State Bank agreed to purchase essentially all of the failed bank's $43.1 million in total assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.9 million. 

Ranked 22nd on our newest list, First Capital Bank of Kingfisher, Oklahoma, was closed today by the Oklahoma State Banking Department. The very small bank had approximately $46.1 million in total assets as of the most recent filings with the FDIC. Of these assets, $40.7 million were acquired by F & M Bank (3300th) of Edmond, Oklahoma. In addition, F & M assumed $44.8 million in total deposits of the former bank for which they paid the FDIC a premium of 7.65 percent. As a result, this is one of the least expensive bank closures on record as the FDIC estimates that the cost to the DIF at only $5.6 million.

30th ranked, Carolina Federal Savings Bank of Charleston, South Carolina, was also closed this week by regulators. The Bank of North Carolina of Thomasville, North Carolina has acquired approximately $41 million of the $54.4 million in total assets of the former bank along with the $53.1 million in total deposits. The Bank of North Carolina may not be without its own difficulties however, as the bank ranks a relatively weak 520th on our list. This places it firmly in the weakest 10% of all banks in the U.S.  Overall, the FDIC estimates that the cost to the DIF to be $15.2 million.

Just off the list in 45th, Waccamaw Bank of Whiteville, North Carolina, was also closed today by its state regulators. The FDIC entered into a purchase and assumption agreement with First Community Bank (4272nd) of Bluefield, Virginia, to acquire the failing bank. As of March 31, 2012, Waccamaw Bank was our largest failure of the week with approximately $533.1 million in total assets and $472.7 million in total deposits. First Community Bank agreed to purchase nearly all of these assets, $515.3 million. The FDIC estimates that the cost to the DIF will be $51.1 million.