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Regulators Close Four More Banks; Failure Tally Rises To 7 In 2012



(RTTNews.com) - The Federal Deposit Insurance Corp. or FDIC announced Friday the shuttering of four banks, one each in Florida and Minnesota as well as two in Tennessee, taking the count of U.S. bank closures in 2012 to 7, after the 92 bank closures in 2011 and 157 in 2010. The closures are the first ever in Minnesota and Tennessee, and the second in Florida this year.

The four banks were closed on Friday by the regulators, with the assets of the failed banks beings assumed by other banks in FDIC-assisted transactions. The FDIC estimates that the cost to the Deposit Insurance Fund or DIF by the four bank closures will be a total of $607 million.

First Guaranty Bank and Trust Co. of Jacksonville, Florida, was closed today by the Florida Office of Financial Regulation. Winter Haven, Florida-based CenterState Bank of Florida, National Association, a subsidiary of CenterState Banks Inc. (CSFL), agreed to purchase essentially all of the assets, in addition to assuming all of the deposits of the failed bank.

As of September 30, 2011, First Guaranty Bank and Trust Co. had about $377.9 million in total assets and $349.5 million in total deposits.

The FDIC and CenterState Bank of Florida entered into a loss-share transaction on $292.9 million of First Guaranty Bank and Trust Co's assets. The eight branches of First Guaranty Bank will reopen on Monday as branches of CenterState Bank of Florida, National Association.

Tennessee Commerce Bank of Franklin, Tennessee, a subsidiary of Tennessee Commerce Bancorp, Inc. (TNCC), was closed by the Tennessee Department of Financial Institutions.

Louisville, Kentucky-based Republic Bank & Trust Co., a unit of Republic Bancorp Inc. (RBCAA), has agreed to purchase about $203.9 million of the failed bank's assets in addition to assuming all of the deposits of the failed bank. As of September 30, 2011, Tennessee Commerce Bank had about $1.185 billion in total assets and $1.156 billion in total deposits.

The sole branch of Tennessee Commerce Bank will reopen on Monday as a branch of Republic Bank & Trust Co.

Patriot Bank Minnesota of Forest Lake, Minnesota, was closed today by the Minnesota Department of Commerce. Savage, Minnesota-based First Resource Bank agreed to purchase essentially all of the assets in addition to assuming all of the deposits of the failed bank.

As of September 30, 2011, Patriot Bank Minnesota had about $111.3 million in total assets and $108.3 million in total deposits.

The FDIC and First Resource Bank entered into a loss-share transaction on $79.4 million of Patriot Bank Minnesota's assets. First Resource Bank will share in the losses on the asset pools covered under the loss-share agreement.

The three branches of Patriot Bank Minnesota will reopen on Saturday as branches of First Resource Bank.

Further, BankEast of Knoxville, Tennessee, was closed by the Tennessee Department of Financial Institutions, which appointed the FDIC as receiver.

Cincinnati, Ohio-based U.S. Bank National Association, a unit of U.S. Bancorp (USB), agreed to purchase essentially all of the assets in addition to assuming all of the deposits of the failed bank. As of September 30, 2011, Western National Bank had about $272.6 million in total assets and $268.8 million in total deposits.

The ten branches of BankEast will reopen on Monday as branches of U.S. Bank National Association.

The FDIC noted that customers of the failed banks can over the weekend access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed, and loan customers should continue to make their payments as usual.

Customers of the failed banks are protected by the FDIC, which has insured bank deposits since the Great Depression, currently covering customer accounts up to $250,000.

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