Three small banks go under; toll for 2011 rises to 14

Regulators seized three small banks Friday, boosting the number of closings in the new year to 14.

 

Two of the banks were in Georgia, which has produced a steady stream of failures since the financial crisis began in 2008. The third was in Illinois, another of the hardest-hit states. All three institutions had been operating under regulatory enforcement orders.

 

The biggest bank to go under was American Trust Bank in Roswell, Ga. Renasant Bank, of Tupelo, Miss., took over American Trust's three branches and $222.2 million in deposits. It also acquired $147.4 million of the failed bank's $238.2 million in assets.

 

The FDIC retained the remaining assets for later sale.

 

BankSouth, of Greensboro, Ga., absorbed North Georgia Bank, in Watkinsville, Ga. That two-branch bank had $139.7 million in deposits and $153.2 million in total assets. The FDIC retained about $30 million of North Georgia Bank's assets.

 

Regulators also closed Community First Bank - Chicago. Northbrook Bank and Trust Co., based in the Chicago suburbs, took over Community First's sole branch, its $49.5 million in deposits and its $51.1 million in assets.

 

The FDIC said the closings would cost its deposit-insurance fund an estimated $116.4 million.

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