Ieva M. Augstums
Regulators shut American Southern Bank in Georgia
CHARLOTTE, N.C. — Regulators on Friday shut down American Southern Bank in Georgia, boosting the number of failures this year to 26 — more bank closures than in all of last year.
The Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Kennesaw, Ga. It had about $112.3 million in assets and $104.3 million in deposits as of March 30.
The FDIC said a majority of the bank’s deposits will be assumed by Bank of North Georgia, based in Alpharetta, Ga. Bank of North Georgia will not assume $48.7 million in brokered deposits held by American Southern Bank. The FDIC said it will pay the brokers directly for the amount of their funds.
In addition to acquiring $55.6 million of the failed bank’s deposits, Bank of North Georgia agreed to purchase approximately $31.3 million in assets. The FDIC will retain the rest for eventual sale.
American Southern Bank branches will reopen Monday as offices of Bank of North Georgia.
American Southern Bank customers can still write checks and use ATM or debit cards, and loan customers should continue to make their payments as usual. The FDIC will continue to insure deposits. Regular deposit accounts are insured up to $250,000.
The latest bank to fail in Georgia was Omni National Bank in Atlanta on March 29.
The list of bank failures is growing as falling home prices and rising unemployment cause more individuals and businesses to default on their debt.
The failures have sapped billions from the deposit insurance fund. It now stands at its lowest level in nearly a quarter-century, $18.9 billion as of Dec. 31, compared with $52.4 billion at the end of 2007.
The FDIC expects that bank failures will cost the insurance fund around $65 billion through 2013.
The 26 bank collapses this year follow 25 failures in 2008, which included two of the biggest savings and loans, Washington Mutual Inc. and IndyMac Bank. Last year’s total was more than in the previous five years combined and up from only three failures in 2007.
The FDIC had 252 banks and thrifts on its list of troubled institutions at the end of 2008, up from 171 in the third quarter.
American Southern Bank customers with questions can call the FDIC toll-free at 800-323-6111.
Related News
Regulators close Michigan bank, small banks in Colorado, Minnesota; marks 98 US bank failuresOctober 2nd, 2009 Regulators close banks in Colorado, Mich., Minn.NEW YORK — Regulators have shut Warren Bank in Warren, Mich., and two small banks in Colorado and Minnesota, boosting the number of failed U.S. banks this year to 98 as loan defaults rise in the worst financial climate in decades.
Regulators close banks in Illinois and Minnesota; 91 bank failures so far this yearSeptember 11th, 2009 MB Financial to take over Corus Bank branchesCHARLOTTE, N.C. — Federal regulators on Friday said they seized Corus Bancshares Inc., a Chicago lender to condominium, office and hotel projects, adding it to the long list of banks that have succumbed this year to the recession and waves of loan defaults.
Regulators shut down bank in Mo, Ill, Iowa; makes 87 US bank failures this yearSeptember 4th, 2009 Regulators shut down banks in Mo, Ill, IowaNEW YORK — Regulators on Friday shut down banks in Missouri, Illinois and Iowa, pushing to 88 the number of banks that have failed this year under the weight of the soured economy and rising loan defaults. The Federal Deposit Insurance Corp.
Regulators shut Bradford Bank in Maryland; 82nd US bank failure this yearAugust 29th, 2009 Regulators shut Bradford Bank in MarylandWASHINGTON — Regulators on Friday shut down Bradford Bank, a small bank in Maryland, marking the 82nd U.S. bank failure this year amid the soured economy and rising loan defaults.
Regulators take over 2 failed Arizona banks, assets sold to Oklahoma City's MidFirst BankAugust 15th, 2009 Regulators seize 1 Nevada, 2 Arizona banksPHOENIX — Two Arizona banks were declared failed institutions on Friday and were taken over by federal or state regulators. The Federal Deposit Insurance Corporation took over control of Gilbert-based Union Bank, National Association.
Regulators shut Dwelling House S&L in Pittsburgh; 73rd US bank failure this yearAugust 14th, 2009 Small thrift in Pennsylvania shut by regulatorsWASHINGTON — Regulators on Friday shut down Dwelling House Savings and Loan Association, a small bank in Pennsylvania, boosting to 73 the number of federally insured banks that have failed this year. The Federal Deposit Insurance Corp.
Regulators close 2 banks in Florida, 1 in Oregon, marking 72 US bank failures this yearAugust 8th, 2009 Regulators close 3 banks in Fla., Ore.; total 72NEW YORK — Regulators on Friday shut down two banks in Florida and one in Oregon, bringing to 72 the number of federally insured banks to fail this year under the weight of the weak economy and rising loan losses. The Federal Deposit Insurance Corp.
Regulators close 2 banks in Florida, marking 71 US bank failures this yearAugust 8th, 2009 Regulators close 2 banks in FloridaNEW YORK — Regulators on Friday shut down two banks in Florida, bringing to 71 the number of federally insured banks to fail this year under the weight of the weak economy and rising loan losses. The Federal Deposit Insurance Corp.
Regulators shut Waterford Village Bank in NY state; 58th US bank to fail this yearJuly 25th, 2009 Regulators shut small bank in NYWASHINGTON — Regulators have shut Waterford Village Bank, a small bank in New York state, boosting to 58 the number of federally insured banks to fail this year. The Federal Deposit Insurance Corp.
Regulators shut First Piedmont Bank in Georgia; 54th US bank to fail this yearJuly 18th, 2009 Regulators shut small Georgia bank; 54th this yearWASHINGTON — Regulators have shut down First Piedmont Bank in Georgia, the 54th federally insured bank to fail this year. The Federal Deposit Insurance Corp.
Regulators shutter small Wyoming bank, bringing this year's failed bank tally to 53July 11th, 2009 Regulators shut small Wyoming bankNEW YORK — Regulators on Friday shut Bank of Wyoming, marking the 53rd failure this year of a federally insured bank. The Federal Deposit Insurance Corp.
Regulators shut Community Bank of West Georgia; 41st bank failure this yearJune 26th, 2009 Regulators shut Ga. bank; 41st to fail this yearWASHINGTON — Regulators have shut down Community Bank of West Georgia, marking the 41st failure this year of a federally insured bank.
Regulators shut down 2 small Southern banks, bringing this year's failed bank tally to 39June 20th, 2009 Regulators close 2 small Southern banksNEW YORK — Regulators on Friday shut down a small bank in Wilmington, N.C. and another small bank in Fayetteville, Ga., pushing this year's tally of failed banks up to 39.
Regulators shut down 3 small banks, bringing this year's failed bank tally to 40June 20th, 2009 US regulators close 3 small banksNEW YORK — Regulators have shut down three more small banks, pushing this year's tally of failed banks to 40. One bank closed Friday was in North Carolina, another in Georgia, and the third was in Kansas.
Regulators close Silverton Bank in Georgia, set up temporary bank; 30th bank failure this yearMay 1st, 2009 Silverton Bank in Georgia shut down by regulatorsWASHINGTON — Regulators have shut down Silverton Bank in Georgia and set up a temporary government-controlled bank until a buyer can be found. It was the 30th bank failure this year in the U.S.
Loading ...