Four More Banks Closed by Regulators

Federal and state regulators closed two banks in Georgia and two in California Friday, raising the toll of shuttered financial institutions in 2011 to 22.

San Luis Trust Bank, FSB, San Luis Obispo, California, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. FDIC entered into a purchase and assumption agreement with First California Bank, Westlake Village, California, to assume all of the deposits of San Luis Trust Bank, FSB.

As of December 31, 2010, San Luis Trust Bank, FSB had approximately $332.6 million in total assets and $272.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, First California Bank agreed to purchase essentially all of the assets.

FDIC was also appointed receiver for Charter Oak Bank, Napa, California. The regulator entered into a purchase and assumption agreement with Bank of Marin, Novato, California, to assume all of the deposits of Charter Oak Bank.

As of December 31, 2010, Charter Oak Bank had approximately $120.8 million in total assets and $105.3 million in total deposits. The FDIC will retain $28.5 million of the assets for later disposition, according to FDIC.

Bad real estate loans

Both California and Georgia have been among the hardest hit states by the decline in real estate values. In Georgia, regulators closed Citizens Bank of Effingham, in Springfield, Georgia and Habersham Bank of Clarkesville, Georgia.

HeritageBank of the South, Albany, Georgia, agreed to assume all of the deposits of Citizens Bank of Effingham. As of December 31, 2010, Citizens Bank of Effingham had approximately $214.3 million in total assets and $206.5 million in total deposits. HeritageBank of the South will pay the FDIC a premium of 1.0 percent to assume all of the deposits of Citizens Bank of Effingham. In addition to assuming all of the deposits of the failed bank, HeritageBank of the South agreed to purchase essentially all of the assets.

FDIC entered into a purchase agreement with SCBT National Association, Orangeburg, South Carolina, to assume all of the deposits of Habersham Bank.

As of December 31, 2010, Habersham Bank had approximately $387.6 million in total assets and $339.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, SCBT National Association agreed to purchase essentially all of the assets.

At the current rate of bank failures, 163 banks will fail in 2011, exceeding the record 156 that shut their doors in 2010.