More failed banks make 138 on year; uninsured depositors may get stiffed

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No buyer for Citizens State Bank, New Baltimore, Michigan. Uninsured depositors may get stiffed.

Citizens State Bank, New Baltimore, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which then appointed Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of New Baltimore (DINB), which will remain open for approximately 45 days to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the receiver immediately transferred to the DINB all insured savings, checking, and secured public units of Citizens State Bank. Certificates of deposit (CDs) and Individual Retirement Accounts (IRAs) were not transferred over to the DINB. The FDIC will mail checks directly to deposit customers who had CDs and IRAs with Citizens State Bank.

The Huntington National Bank, Columbus, Ohio, will provide operational management of the DINB under a contract with the FDIC…

As of September 30, 2009, Citizens State Bank had $168.6 million in total assets and $157.1 million in total deposits. At the time of closing, deposits of approximately $803,000 potentially exceeded the insurance limits. Uninsured deposits were not transferred to the DINB. This estimate is likely to change once the FDIC obtains additional information from these customers.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-350-2746 an appointment to discuss their deposits.

Peoples First Community Bank, Panama City, Florida

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Peoples First Community Bank, Panama City, Florida, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Hancock Bank, Gulfport, Mississippi, to assume all of the deposits of Peoples First Community Bank.

The 29 branches of Peoples First Community Bank will reopen during normal business hours beginning Saturday as branches of Hancock Bank. Depositors of Peoples First Community Bank will automatically become depositors of Hancock Bank…

As of September 30, 2009, Peoples First Community Bank had approximately $1.8 billion in total assets and $1.7 billion in total deposits. The Hancock Bank will pay the FDIC a premium of one percent to assume all of the deposits of Peoples First Community Bank. In addition to assuming all of the deposits of the failed bank, Hancock Bank agreed to purchase approximately $1.6 billion of the failed bank’s assets. The FDIC retained the remaining assets for later disposition.

The FDIC and Hancock Bank entered into a loss-share transaction on approximately $1.4 billion of Peoples First Community Bank’s assets. Hancock Bank will share in the losses on the asset pools covered under the loss-share agreement.

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New South Federal Savings Bank, Irondale, Alabama

New South Federal Savings Bank, Irondale, Alabama, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Beal Bank, Plano, Texas, to assume all of the deposits of New South Federal Savings Bank.

The sole branch of New South Federal Savings Bank will reopen on Monday as a branch of Beal Bank. Depositors of New South Federal Savings Bank will automatically become depositors of Beal Bank…

As of September 30, 2009, New South Federal Savings Bank had approximately $1.5 billion in total assets and $1.2 billion in total deposits. Beal Bank did not pay the FDIC a premium for the deposits of New South Federal Savings Bank. In addition to assuming all of the deposits of the failed bank, Beal Bank agreed to purchase essentially all of the failed bank’s assets.

The FDIC and Beal Bank entered into a loss-share transaction on $1.2 billion of New South Federal Savings Bank’s assets. Beal Bank will share in the losses on the asset pools covered under the loss-share agreement.

Uninsured depositors at Independent Bankers’ Bank, Springfield, Illinois are not happy

The Federal Deposit Insurance Corporation (FDIC) created a bridge bank to take over the operations of Independent Bankers’ Bank, Springfield, Illinois, after the bank was closed today by the Illinois Department of Financial and Professional Regulation—Division of Banking, which appointed the FDIC as receiver. The newly created bank is Independent Bankers’ Bank Bridge Bank, National Association.

Independent Bankers’ Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks…

As of September 30, 2009, Independent Bankers’ Bank had approximately $585.5 million in assets and $511.5 in deposits. At the time of closing, the bank had an estimated $269,000 in uninsured funds.

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