State and federal regulators closed seven banks today, including two with more than $1 billion in assets, bringing the total number of bank failures this year to 37.
At this point last year, regulators had shut down 20 banks.
The seven new closures were the most in a single day since Oct. 30, 2009, when nine banks were seized.
The largest closure of the day (see separate story) was at the single-branch Advanta Bank Corp. in Draper, Utah, located outside of Salt Lake City. The bank is an issuer of credit cards for small businesses and professionals.
The day also brought a new rash of bank closings in Georgia, which has suffered more failures than any other state in the wake of the financial crisis.
Georgia
Three banks closed in Georgia, the highest total in a single day for the state since July 24, when six were shut down. Now 35 banks have closed in Georgia since the start of 2008.
The largest closure in the state was the 10-branch Appalachian Community Bank in Ellijay, Ga. The FDIC announced it will be taken over by Community & Southern Bank of Carrollton, Ga. Last year, the bank lost $59.3 million. It had assets of $1.01 billion, and its closure will cost the FDIC insurance fund $419.3 million.
Bank of Hiawassee, in Hiawassee, Ga., also was closed today, the FDIC announced. It had assets of $377.8 million and its five branches will reopen as branches of Citizens South Bank of Gastonia, N.C. The bank's closure will cost the insurance fund $137.7 million.
The two-branch Century Security Bank in Duluth, Ga. was also shut down, the FDIC announced, and it will reopen as a branch of Bank of Upson, based in Thomaston, Ga. The bank has lost money every year since it opened in 2006, including a $5.2 million loss last year. It will cost the insurance fund $29.9 million
Other closures include:
· Four-branch First Lowndes Bank in Fort Deposit, Ala., which will cost the insurance fund $38.3 million (FDIC announcement)
· Single-branch State Bank of Aurora in Aurora, Minn., which will cost the insurance fund $4.2 million (FDIC announcement).
· Single-branch American National Bank in Parma, Ohio, which will cost the insurance fund $17.1 million (FDIC announcement).
American National, which will become a branch of National Bank and Trust Company in Wilmington, Ohio, lost $10.6 million last year. The Office of the Comptroller of Currency closed the bank because it "had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices," the agency said in a statement.
It also reported that the bank's capital was so depleted that there was no way it could become capitalized against without government aid.
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