And so it begins.
That sounds dramatic, right? Maybe not quite as good as “Banks failing all over the country,” but that just sounds a bit too dramatic. Seven banks were added to the FDIC Failed Bank List tonight:
State Bank of Aurora, Aurora, MN - Total deposits of $27.8 million and an estimated hit to the Deposit Insurance Fund (DIF) of $4.2 million. “The FDIC and Northern State Bank entered into a loss-share transaction on $21.3 million of State Bank of Aurora’s assets.”
First Lowndes Bank, Fort Deposit, AL - Total deposits of $131.1 million and an estimated hit to the DIF of $38.3 million. “The FDIC and First Citizens Bank entered into a loss-share transaction on $104.1 million of First Lowndes Bank’s assets.”
Bank of Hiawassee, Hiawassee, GA - Total deposits of $339.6 million and an estimated hit to the DIF of $137.7 million. “The FDIC and Citizens South Bank entered into a loss-share transaction on $232.6 million of Bank of Hiawassee’s assets.”
Appalachian Community Bank, Ellijay, GA - Total deposits of $917.6 million and an estimated hit to the DIF of $419.3 million. “The FDIC and Community & Southern Bank entered into a loss-share transaction on $798.6 million of Appalachian Community Bank’s assets.”
Advanta Bank Corp., Draper, UT - Total deposits of $1.5 billion and an estimated hit to the DIF of $635.6 million. There was no bank taking this one over, and it was estimated that there were $247,000 in uninsured deposits. Seriously, people, keep those deposits under the FDIC limits.
Century Security Bank, Duluth, GA - Total deposits of $94.0 million and an estimated hit to the DIF of $29.9 million. “The FDIC and Bank of Upson entered into a loss-share transaction on $81.5 million of Century Security Bank’s assets.”
American National Bank, Parma, OH - Total deposits of $66.8 million and an estimated hit to the DIF of $17.1 million. “The FDIC and The National Bank and Trust Company entered into a loss-share transaction on $49.8 million of American National Bank’s assets.”
That brings the total for the year up to 37. This will be a busy night for the FDIC (some of these banks will be re-opened on Saturday).
I want to emphasize that nobody should have deposits exceeding the FDIC insurance limits. If you are fortunate enough to have deposit accounts larger than the limits, please spread your accounts out to multiple institutions. We have banks ranging from $25 million to $1.5 billion institutions failing today. One bank failure resulted in losses for uninsured depositors. Don’t subject yourself to the easily avoidable risk of losses stemming from bank failures.
