3 Banks Closed on May 20

Now 54 Failed Institutions So Far in 2011
3 Banks Closed on May 20
State and federal banking regulators closed three banks on Friday, May 20, raising the year's running tally to 54 failed institutions so far in 2011.

The latest closings:

Summit Bank, Burlington, Wash.

Summit Bank, Burlington, Washington, was closed by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of Summit Bank.

The three branches of Summit Bank will reopen on Monday as branches of Columbia State Bank. Depositors of Summit Bank will automatically become depositors of Columbia State Bank.

As of March 31, 2011, Summit Bank had approximately $142.7 million in total assets and $131.6 million in total deposits. Columbia State Bank will pay the FDIC a premium of 0.75 percent to assume all of the deposits of Summit Bank. In addition to assuming all of the deposits of the failed bank, Columbia State Bank agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $15.7 million.

Atlantic Southern Bank, First Georgia Banking Company

CertusBank, National Association, Easley, South Carolina, acquired the banking operations, including all the deposits, of Atlantic Southern Bank, Macon, Georgia, and First Georgia Banking Company, Franklin, Georgia. The two banks were closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver for each institution. To protect depositors, the FDIC entered into purchase and assumption agreements with CertusBank, N.A.

All 26 branches of the two closed banks were to reopen during their normal business hours beginning Saturday as branches of CertusBank, N.A. Depositors of the two failed banks will automatically become depositors of CertusBank, N.A.

As of March 31, 2011, Atlantic Southern Bank had total assets of $741.9 million and total deposits of $707.6 million; and First Georgia Banking Company had total assets of $731.0 million and total deposits of $702.2 million. Besides assuming all the deposits from the two Georgia banks, CertusBank, N.A. will purchase essentially all of their assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Atlantic Southern Bank will be $273.5 million and for First Georgia Banking Company, $156.5 million.


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