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Home >> News >> Data >> Five Banks Fail, Drawing Nearly $150M from the FDIC
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Five Banks Fail, Drawing Nearly $150M from the FDIC

Five Banks Fail, Drawing Nearly $150M from the FDIC

Five banks failed Friday, requiring an estimated total of $150 million from the ""FDIC"":http://www.fdic.gov/. Banks failed in Illinois, Kansas, Georgia, and Florida with the greatest expense stemming from a single bank in Illinois.

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The FDIC estimates the failure of Second Federal Savings and Loan Association of Chicago will lead to a total cost of $76.9 million.

Hinsdale Bank & Trust Company, based in Hinsdale, Illinois, has assumed all the deposits of Second Federal Savings and Loan Association of Chicago as well as $14.2 million in assets, mostly cash.

As of the end of the first quarter, the Chicago bank held $199.1 million in assets and $175.9 million in deposits. Hinsdale Bank has agreed to pay the FDIC $100,000 to assume the deposits.

The two banks estimated to draw the second- and third-highest amounts of funds from the FDIC due to their closings are located in Georgia. The FDIC estimates its cost incurred at the closing of First Cherokee State Bank in Woodstock, Georgia, will be $36.9

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million, and the cost incurred at the closing of Georgia Trust Bank in Buford, Georgia, will be $20.9 million.

With $222.7 million in assets and $193.3 million in deposits, the three branches of First Cherokee State Bank are now functioning as branches of Community & Southern Bank, based in Atlanta.

Community & Southern Bank entered an agreement with the FDIC to assume all of First Cherokee's deposits at a premium of 0.50 percent. The Atlanta bank will also purchase almost all of the former bank's assets.

Community & Southern Bank is also assuming all the deposits of Georgia Trust Bank, in addition to $111.5 million of Georgia Trust's assets.

Georgia Trust Bank held $119.8 million in assets and $117.4 million in deposits as of March 31.

Heartland Bank, based in Leawood, Kansas, also closed Friday, causing the FDIC an estimated cost of $3.1 million.

Heartland had $110 million in assets and $102.6 million in deposits as of the end of March.

Metcalf Bank, based in Lees Summit, Missouri, has agreed to assume all of Heartland's deposits for a premium of 1.11 percent. Metcalf will also take on almost all of Heartland's assets.

The Royal Palm Bank of Florida, based in Naples, Florida, also closed, leading to an estimated cost of $13.5 million to the national insurance corporation.

First National Bank of the Gulf coast, also based in Naples, Florida, entered a purchase and assumption agreement with the FDIC to assume all of the failed bank's deposits and nearly all of its assets.

As of the end of March, First National Bank of the Gulf Coast held $87 million in assets and $85.1 million in deposits.

About Krista Franks Brock

Krista Franks Brock
Krista Franks Brock is a regular contributor to DSNews.com and TheMReport.com. She previously served as managing editor of DS News magazine. Prior to joining DS News, she was managing editor of Southern Distinction, a regional lifestyle magazine based in Athens, Georgia. She is currently a freelance writer and editor for various online and print publications. She holds degrees in journalism and art from the University of Georgia, where she also earned a minor in Spanish.

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