June 28, 2009
Federal and state regulators closed another five banks at the end of last week, raising the number of banks that have failed so far this year to 45.
Two of the banks were in California, two in Georgia and one in Minnesota. So far in 2009, nine banks have closed in Georgia while six have failed in California.
In California, regulators closed Mirae Bank of Los Angeles and Metro Pacific Bank or Irvine.
Wilshire State Bank agreed to purchase Mirae Banks assets and will operate its five branches. As of May 29, 2009, Mirae Bank had total assets of $456 million and total deposits of approximately $362 million. In addition to assuming all of the deposits of the failed bank, Wilshire State Bank agreed to purchase approximately $449 million of assets. The FDIC will retain the remaining assets for later disposition.
Sunwest Bank, Tustin, California, has agreed to assume all of the deposits of MetroPacific Bank, excluding those from brokers. As of June 8, 2009, MetroPacific Bank had total assets of $80 million and total deposits of approximately $73million. Sunwest Bank agreed to purchase virtually all of the failed bank's assets.
In Georgia, regulators closed Neighborhood Community Bank of Newnan and Community Bank of West Georgia, located in Villa Rica, GA.
CharterBank, West Point, Georgia, has assumed all of the deposits of Neighborhood Community Bank. As of March 31, 2009, Neighborhood Community Bank had total assets of $221.6 million and total deposits of approximately $191.3 million. In addition to assuming all of the deposits of the failed bank, CharterBank agreed to purchase approximately $209.6 million of assets.
The Federal Deposit Insurance Corporation was unable to find a buyer for Community Bank of West Georgia, and will therefore mail checks to depositors, covering their deposits up to $250,000.
As of May 15, 2009, Community Bank of West Georgia had total assets of $199.4 million and total deposits of $182.5 million. At the time of closing, the bank had approximately $1.1 million in deposits that exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers, FDIC said.
Regulators also closed Horizon Bank, of Pine City, Minnesota, selling its assets to Stearns Bank, St. Cloud, MN. As of March 31, 2009, Horizon Bank had total assets of $87.6 million and total deposits of approximately $69.4 million. Stearns Bank, N.A. paid a premium of 0.75 percent to acquire all of the deposits of the failed bank. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase approximately $84.4 million of assets. The FDIC will retain the remaining assets for later disposition.
