Regulators shut 2 small banks in Georgia; makes 20 US bank failures this year

[OhioChick]

Source: AP

February 18, 2011 - 6:49 PM

WASHINGTON (AP) - Regulators have shut down two small banks in Georgia, boosting to 20 the number of U.S. bank failures this year after the weak economy and mounting bad debt brought down 157 banks in 2010.

The Federal Deposit Insurance Corp. on Friday seized Habersham Bank, based in Clarkesville, with $387.6 million in assets; and Citizens Bank of Effingham, based in Springfield, with $214.3 million in assets. SCBT National Association, based in Orangeburg, S.C., agreed to assume the assets and deposits of Habersham Bank. HeritageBank of the South, based in Albany, Ga., is acquiring the assets and deposits of Citizens Bank of Effingham.

The two shutdowns brought the number of failures in Georgia this year to six. Georgia has been one of the hardest-hit states for bank failures.



Read more: http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D9LFGB5G1

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http://www.fdic.gov/bank/individual/failed/banklist.html

[Kennah]

1. 3 in 2007, 25 in 2008, 140 in 2009, 157 in 2010

If present trends continue, there will 146 in 2011.

[FBaggins]

2. Raw numbers are irrelevant.

Many of these "banks" (especially in GA) are barely the size of a decent branch of a larger bank. Some of the bank failures the first couple years were 100 times as big.

[Kennah]

3. To an extent that's true ...

... but if it's mostly all teeny banks failing then the raw numbers do matter showing a trend.

[FBaggins]

4. Absolutely true...

...but in this case it was the really big banks... and now it's the tiny ones.

There were a handful of failures early on that each easily topped all twenty so far this year combined.

[Viva_La_Revolution]

5. 2 More in California.. total now of 22

U.S. banking authorities closed four banks on Friday, bringing the total number shuttered in 2011 to 22.

Charter Oak Bank of Napa, California, was closed. The two branches of Charter Oak Bank will reopen on Tuesday as branches of Bank of Marin. As of December 31, 2010, Charter Oak Bank had approximately $120.8 million in total assets and $105.3 million in total deposits.

*San Luis Trust Bank, FSB of San Luis Obispo, California, which had one branch, will reopen on Tuesday as part of First California Bank. It had about $332.6 million in total assets and $272.2 million in total deposits as of December 31, 2010.