Bank Failure Friday Claims 4 More Banks

After three banks were seized by regulators last week, four more banks bite the dust this Friday. The pace of bank failures appears to be accelarating as the year goes on. The FDIC will run out of funds either later this summer or, most certainly, by sometime this fall and be in need of a taxpayer bailout. Expect the numbers of bank failures go continue to grow, please make sure you are within FDIC limits.-Lou


Four banks fail, bringing 2009 tally to 44

SAN FRANCISCO (MarketWatch) -- Four banks in Georgia, Minnesota and California were closed by regulators Friday, as the ongoing credit crisis continued to claim victims.

Villa Rica, Ga.-based Community Bank of West Georgia and Newman, Ga.-based Neighborhood Community Bank were closed, as were Irvine, Calif.-based MetroPacific Bank and Pine City, Minn.-based Horizon Bank. The closures brought the national tally this year to 44, and marked the ninth so far in Georgia.

The Federal Deposit Insurance Corporation said in a statement that it will mail checks to insured depositors at Community Bank of West Georgia on Monday. An institution able to assume the failed bank's deposits could not be found, the FDIC added.

Community Bank of West Georgia had $199.4 million in assets and $182.5 million in deposits as of May 15, according to the regulator, which said that at the time of the closing the bank had roughly $1.1 million in deposits that exceeded the $250,000 limit for insurance.
The FDIC estimated that the failure of Community Bank of West Georgia will cost its deposit insurance fund roughly $85 million.

Neighborhood Community Bank had $221.6 million in assets and $191.3 million in deposits as of March 31, the FDIC said.

The regulator said that West Point, Ga.-based CharterBank will assume National Community Bank's deposits, and that offices of National Community will reopen as branches of CharterBank.
CharterBank also agreed to buy $209.6 million worth of the failed bank's assets.
The failure of National Community will cost the deposit insurance fund $66.7 million, the FDIC added.

Minnesota-based Horizon Bank had $87.6 million in assets and $69.4 million in deposits as of March 31, the FDIC said. The failed bank's deposits will be assumed by St. Cloud, Minn.-based Stearns Bank, National Association.

The cost of Horizon Bank's failure to the deposit insurance fund will be $33.5 million, the FDIC added.

California-based MetroPacific Bank had $80 million in assets and $73 million in deposits, according to the regulator. The failed bank's deposits have been assumed by Tustin, Calif.-based Sunwest Bank.

The cost of MetroPacific Bank's failure to the deposit insurance fund will be $29 million, the FDIC said.