Weekend Economists Chart the Bradbury Chronicles, June 8-10,2012

[Demeter]

32. More Details to Fuddnik's report

First Capital Bank, Kingfisher, Oklahoma, was closed today by the Oklahoma State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with F & M Bank, Edmond, Oklahoma, to assume all of the deposits of First Capital Bank.

The sole branch of First Capital Bank will reopen on Saturday as a branch of F & M Bank...As of March 31, 2012, First Capital Bank had approximately $46.1 million in total assets and $44.8 million in total deposits. F & M Bank will pay the FDIC a premium of 7.65 percent to assume all of the deposits of First Capital Bank. In addition to assuming all of the deposits of the failed bank, F & M Bank agreed to purchase approximately $40.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.6 million. Compared to other alternatives, F & M Bank's acquisition was the least costly resolution for the FDIC's DIF. First Capital Bank is the 25th FDIC-insured institution to fail in the nation this year, and the first in Oklahoma. The last FDIC-insured institution closed in the state was First National Bank of Davis, Davis, on March 11, 2011.

Carolina Federal Savings Bank, Charleston, South Carolina, was closed today by the Office of the Comptroller of the Currency (OCC), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of North Carolina, Thomasville, North Carolina, to assume all of the deposits of Carolina Federal Savings Bank.

The two branches of Carolina Federal Savings Bank will reopen during normal business hours as branches of Bank of North Carolina...As of March 31, 2012, Carolina Federal Savings Bank had approximately $54.4 million in total assets and $53.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, Bank of North Carolina agreed to purchase approximately $41.0 million of the assets. The FDIC will retain the remaining assets for later disposition...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $15.2 million. Compared to other alternatives, Bank of North Carolina's acquisition was the least costly resolution for the FDIC's DIF. Carolina Federal Savings Bank is the 26th FDIC-insured institution to fail in the nation this year, and the second in South Carolina. The last FDIC-insured institution closed in the state was Plantation Federal Bank, Pawleys Island, on April 27, 2012.

Farmers and Traders State Bank, Shabbona, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank, Mendota, Illinois, to assume all of the deposits of Farmers and Traders State Bank.

The two branches of Farmers and Traders State Bank will reopen on Saturday as branches of First State Bank...As of March 31, 2012, Farmers and Traders State Bank had approximately $43.1 million in total assets and $42.3 million in total deposits. In addition to assuming all of the deposits, First State Bank agreed to purchase essentially all of the failed bank's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.9 million. Compared to other alternatives, First State Bank's acquisition was the least costly resolution for the FDIC's DIF. Farmers and Traders State Bank is the 27th FDIC-insured institution to fail in the nation this year, and the second in Illinois. The last FDIC-insured institution closed in the state was Premier Bank, Wilmette, on March 23, 2012.

Waccamaw Bank, Whiteville, North Carolina, was closed today by the North Carolina Office of the Commissioner of Banks, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Community Bank, Bluefield, Virginia, to assume all of the deposits of Waccamaw Bank.

The 16 branches of Waccamaw Bank will reopen on Monday as branches of First Community Bank...As of March 31, 2012, Waccamaw Bank had approximately $533.1 million in total assets and $472.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Community Bank agreed to purchase approximately $515.3 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and First Community Bank entered into a loss-share transaction on $330.6 million of Waccamaw Bank's assets. First Community Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $51.1 million. Compared to other alternatives, First Community Bank's acquisition was the least costly resolution for the FDIC's DIF. Waccamaw Bank is the 28th FDIC-insured institution to fail in the nation this year, and the first in North Carolina. The last FDIC-insured institution closed in the state was Blue Ridge Savings Bank, Inc., Asheville, on October 14, 2011.

TOTAL BILL TO THE FDIC: $80.8M