Number Three Bank Fails

The third-ranked bank on our list, Glasgow Savings Bank of Glasgow, Missouri was shut down today by regulators. Glasgow Savings Bank had approximately $24.8 million in total assets and $24.2 million in total deposits which were assumed by Regional Missouri Bank (4362nd) of Marceline, Missouri. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $0.1 million.

Another Top 40 Failure

Regulators did not take the week off in deciding that 14th-ranked Montgomery Bank & Trust of Ailey, Georgia needed to be closed today.  Ameris Bank of Moultrie, Georgia agreed to assume all of $164.4 million in deposits of Montgomery Bank & Trust. Ameris Bank, a frequent acquirer of seized  banks over the last few years agreed only to purchase approximately $12.4 million in largely cash assets, however. As a result, the FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be a significant $75.2 million in terms of the percentage of assets of the failed bank. Ameris Bank is itself a relatively weak bank with a ranking of 435th out the 7300 currently in our ratings. This may explain their inability to assume the assets of another failed bank.

Second Straight Week of No Failures

There have been no bank failures to report this week. As new information comes in The Bank Blog will be updated.

No New Failures

For the week ending Friday, June 22nd there have been no report bank failures.

Number Five Bank Fails

The fifth riskiest bank on our list failed this week along with two others. Putnam State Bank of Palatka, Florida joins its brethren in one of the states hardest hit by the financial crisis. Harbor Community Bank (7189th) of Indiantown, Florida, has agreed to assume all of the approximately $160.0 million in total deposits of Putnam State Bank. In addition, the FDIC and Harbor Community Bank have entered into a loss-share transaction on $112.3 million out of of approximately $169.5 million of Putnam State Bank's assets. This transaction will increase the asset base of Harbor Community Bank by 50-60% based on the most recent figures and ultimate resolution of the assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $37.4 million.

In a sign that just because a firm does not make the Top 40 list does not mean that it is without risk, 70th-ranked Security Exchange Bank of Marietta, Georgia was closed today by the Georgia Department of Banking and Finance. Fidelity Bank (1563rd) of Atlanta, Georgia, has agreed to assume the approximately $147.9 million in total deposits. Similar to Harbor Community Bank, Fidelity Bank has entered into a loss-share transaction on $102.8 million of the former bank's $151.0 million in total assets. The FDIC estimates that the cost to the DIF will be $34.3 million.

The Farmers Bank of Lynchburg of Lynchburg, Tennessee, was also closed today. Essentially all of the approximately $163.9 million in total assets and $156.4 million in total deposits were taken over by Clayton Bank and Trust (5071st) of Knoxville, Tennessee.The estimated cost to the DIF will be $28.3 million.

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.

No New Failures

As of 8:15 pm EDT there have been no bank failures to report. The Bank Blog will be updated throughout the evening as more information comes in.