The Federal Deposit Insurance Corporation announced that two more banks have been closed and placed under FDIC receivership – Integrity Bank of Alpharetta, Georgia and The Columbian Bank and Trust Company of Topeka, Kansas – bringing the total number of FDIC-insured institutions that have failed this year to ten.
Integrity Bank, with $974 million in total deposits, was closed on Friday by the Georgia Department of Banking and Finance. Regions Bank of Birmingham, Alabama agreed to purchase all deposits of Integrity Bank for a total premium of 1.012 percent. In addition, Regions Bank has purchased $34.4 million of the failed bank’s $1.1 billion in total assets. The FDIC said it would retain the remaining assets for later disposition.

The nine branches of Columbian Bank and Trust Company reopened last week as branches of Chillicothe, Missouri-based Citizens Bank and Trust, who agreed to assume the failed bank’s insured deposits of $576 million for a 1.125 percent premium. Citizens also agreed to purchase $85.5 million of Columbian’s $752 million assets; the rest of which will be disposed of later by the FDIC. Columbian had an estimated $46 million in uninsured deposits held in approximately 610 accounts, and $268 million in brokered deposits that were not included in the Citizens Bank transaction. The FDIC said it would pay brokers directly for the amount of the $268 million that was insured.
The FDIC estimated that the cost to its Deposit Insurance Fund resulting from the failure of Integrity Bank will be between $250 million and $350 million. The cost of Columbian Bank and Trust is estimated at $60 million.
The FDIC’s insurance fund dwindled to $45.2 billion during the second quarter of this year, from $53 billion in the first quarter. Since then, the collapse of IndyMac Bank and five other regional banks, including the most recent in Georgia and Kansas, have shrunk the insurance fund even further. The agency will likely have to raise fees to banks to replenish its reserves. FDIC Chairwoman Sheila Bair has declined to comment on the size of any anticipated increase, but said the agency is planning to revamp its fee structure to correlate high-risk practices with higher rates.
To view the FDIC’s list of failed banks, dating back to October 2000, and information surrounding each individual closing, click here.