4 Banks, 1 Credit Union Fail Feb. 18

2011 Tally of Failed Institutions: 24
4 Banks, 1 Credit Union Fail Feb. 18
Federal and state regulators closed four banks on Friday, Feb.18, and one credit union was placed into conservatorship.

These latest announcements of failed institutions make the total 24 so far in 2011.

The latest failures:

Habersham Bank, Clarkesville, Ga.

Habersham Bank, Clarkesville, Georgia, was closed by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with SCBT National Association, Orangeburg, South Carolina, to assume all of the deposits of Habersham Bank.

The eight branches of Habersham Bank were to reopen during their normal business hours beginning Saturday as branches of Habersham Bank, a division of SCBT National Association. Depositors of Habersham Bank will automatically become depositors of SCBT National Association.

As of December 31, 2010, Habersham Bank had approximately $387.6 million in total assets and $339.9 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $90.3 million.

Citizens Bank of Effingham, Springfield, Ga.

Citizens Bank of Effingham, Springfield, Georgia, was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver.

The four branches of Citizens Bank of Effingham were to reopen on Saturday as branches of HeritageBank of the South. Depositors of Citizens Bank of Effingham will automatically become depositors of HeritageBank of the South.

As of December 31, 2010, Citizens Bank of Effingham had approximately $214.3 million in total assets and $206.5 million in total deposits.

The FDIC estimates that the cost to the DIF will be $59.4 million.

Greensburg Community Federal Credit Union

The National Credit Union Administration on Feb. 17 assumed control of operations at Greensburg Community Federal Credit Union of Greensburg, Pennsylvania. NCUA's goal is to continue credit union service to the members and ensure safe and sound credit union operations.

Service to Greensburg Community Federal Credit Union's 983 members continues uninterrupted. Members can conduct normal financial transactions - deposit and access funds, make loan payments and use share drafts.

Greensburg Community Federal Credit Union has assets of $2.2 million, providing financial services to persons who live, work, worship, or go to school in, and business and other legal entities within a radius of three miles of the U.S. Post Office in Greensburg, Pennsylvania.

Charter Oak Bank, Napa, Calif.

Charter Oak Bank, Napa, California, was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Marin, Novato, California, to assume all of the deposits of Charter Oak Bank.

The two branches of Charter Oak Bank will reopen on Tuesday as branches of Bank of Marin. Depositors of Charter Oak Bank will automatically become depositors of Bank of Marin. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.

As of December 31, 2010, Charter Oak Bank had approximately $120.8 million in total assets and $105.3 million in total deposits.

The FDIC estimates that the cost to the DIF will be $21.8 million.

San Luis Trust Bank, FSB, San Luis Obispo, Calif.

San Luis Trust Bank, FSB, San Luis Obispo, California was closed by the Office of Thrift Supervision, which appointed FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First California Bank, Westlake Village, California, to assume all of the deposits of San Luis Trust Bank, FSB.

The sole branch of San Luis Trust Bank, FSB will reopen on Tuesday as a branch of First California Bank. Depositors of San Luis Trust Bank, FSB will automatically become depositors of First California Bank.

As of December 31, 2010, San Luis Trust Bank, FSB had approximately $332.6 million in total assets and $272.2 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $96.1 million.


About the Author

Tracy Kitten

Tracy Kitten

Director of Global Events Content and Executive Editor, BankInfoSecurity & CUInfoSecurity

Kitten was director of global events content and an executive editor at ISMG. A veteran journalist with more than 20 years' experience, she covered the financial sector for 10+ years. Before joining Information Security Media Group in 2010, she covered the financial self-service industry as the senior editor of ATMmarketplace, part of Networld Media. Kitten has been a regular speaker at domestic and international conferences, and was the keynote at ATMIA's U.S. and Canadian conferences in 2009. She has been quoted by CNN.com, ABC News, Bankrate.com and MSN Money.




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