Five Banks Fall Over Weekend, National Tally at 38

07/23/2012 By: Tory Barringer

The FDIC’s Deposit Insurance Fund (DIF) is an estimated $151.3 million dollars lower after Friday claimed five more banks nationwide.

Royal Palm Bank of Florida in Naples closed Friday, marking the fifth bank closure in the state and the 34th bank closure in the country overall. FDIC announced at the same time the closure of four other banks: Georgia Trust Bank in Buford; First Cherokee State Bank in Woodstock, Georgia; Heartland Bank in Leawood, Kansas; and Second Federal Savings and Loan Association of Chicago. These closings bring the 2012 national tally to 38.

Bank closing details

Royal Palm Bank of Florida in Naples, Florida was the fifth Florida bank and the 34th bank overall to close this year. First National Bank of the Gulf Coast acquired assumed all of the deposits ($85.1 million) and agreed to purchase essentially all of the assets ($87 million). The estimated cost to the DIF is $13.5 million.

Georgia Trust Bank in Buford, Georgia, was the seventh bank to fail in the state so far this year and the 35th overall. Community & Southern Bank assumed all of the $117.4 million in deposits and $111.5 million of Georgia Trust’s total assets. Estimated cost to the DIF is $20.9 million.

First Cherokee State Bank of Woodstock, Georgia, was the eighth Georgian bank to fail in 2012 and the 36th overall. Community & Southern Bank assumed all of First Cherokee’s $193.3 million in deposits and acquired essentially all of the failed bank’s $222.7 million in assets. Estimated cost to the DIF is $36.9 million.

Heartland Bank of Leawood, Kansas, was the first bank in Kansas to fail this year and the 37th overall. Metcalf Bank assumed all of Heartland’s $102.6 million in total deposits and acquired essentially all of Heartland’s $110 million in total assets. Estimated cost to the DIF is $3.1 million.

Federal Savings and Loan Association of Chicago, Illinois, was the fifth bank to close in Chicago this year and the 38th overall. Hinsdale Bank & Trust Company paid FDIC a premium of $100,000 to assume all of the failed bank’s $175.9 million in deposits and agreed to purchase $14.2 million of the failed bank’s $199.1 million in assets. Estimated cost to the DIF is $76.9 million.