3 Banks, 1 Credit Union Closed on Feb. 4

2011 Tally of Failed Institutions: 15
3 Banks, 1 Credit Union Closed on Feb. 4
Federal and state regulators closed three banks and one credit union on Friday, Feb. 4.

These latest announcements of failed institutions make the total 15 so far in 2011.

The latest failures:

Community First Bank, Chicago

Community First Bank - Chicago, was closed by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northbrook Bank and Trust Company, Northbrook, Ill., to assume all of the deposits of Community First Bank - Chicago.

The sole branch of Community First Bank - Chicago was to reopen on Saturday as a branch of Northbrook Bank and Trust Company. Depositors of Community First Bank - Chicago will automatically become depositors of Northbrook Bank and Trust Company.

As of Dec. 31, Community First Bank - Chicago had approximately $51.1 million in total assets and $49.5 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $11.7 million.

North Georgia Bank, Watkinsville, Ga.

North Georgia Bank, Watkinsville, Ga., was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with BankSouth, Greensboro, Ga., to assume all of the deposits of North Georgia Bank, except certain brokered and Internet deposits.

The two branches of North Georgia Bank were to reopen on Saturday as branches of BankSouth. Depositors of North Georgia Bank will automatically become depositors of BankSouth.

As of Dec. 31, 2010, North Georgia Bank had approximately $153.2 million in total assets and $139.7 million in total deposits.

The FDIC estimates that the cost to the DIF will be $35.2 million.

American Trust Bank, Roswell, Ga.

American Trust Bank, Roswell, Ga., was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Renasant Bank, Tupelo, Miss., to assume all of the deposits of American Trust Bank.

As of Dec. 31, American Trust Bank had approximately $238.2 million in total assets and $222.2 million in total deposits.

The FDIC estimates that the cost to the DIF will be $71.5 million.

Oakland Municipal Credit Union, Oakland, Calif.

Oakland Municipal Credit Union of Oakland, Calif., was closed by the California Department of Financial Institutions (DFI). The National Credit Union Administration as liquidating agent arranged for Western Federal Credit Union of Manhattan Beach, Calif., to immediately purchase and assume Oakland Municipal's assets, liabilities and members.

At closure, Oakland Municipal had approximately $88 million in assets and served 7,800 members. The credit union was established in 1964 to serve employees of Oakland area federal, state, and local government.

Western Federal Credit Union has $1.5 billion in assets and 148,000 members. Western Federal Credit Union will continue to serve members of Oakland Municipal Credit Union at the existing branch office located at 150 Frank H. Ogawa Place.

This is the first federally insured credit union liquidation in 2011.


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