Four Banks Fail Over the Weekend

Four banks were seized by regulators over the weekend, bringing the total number of failures so far this year to 64.  In 2010, 160 banks went into receivership, were merged with another financial institution, or closed their doors entirely. 

At the current rate, the total for 2011 could reach 106.  Currently, there are nearly 1,000 banks and other financial organizations on the troubled list. 

The latest banks to fail: 

Lydian Private Bank, Palm Beach, Florida, was closed by the Office of the Comptroller of the Currency. Sabadell United Bank, National Association, Miami, Florida, will assume all of the deposits of Lydian Private Bank. As of June 30, 2011, Lydian Private Bank had approximately $1.70 billion in total assets and $1.24 billion in total deposits.

In addition to assuming all of the deposits of the failed bank, Sabadell United Bank, National Association agreed to purchase essentially all of the assets.

First Choice Bank, Geneva, Illinois, was closed by the Illinois Department of Financial and Professional Regulation. Inland Bank & Trust, Oak Brook, Illinois, is assuming assume all of the deposits of First Choice Bank. As of June 30, 2011, First Choice Bank had approximately $141.0 million in total assets and $137.2 million in total deposits.

First Southern National Bank, Statesboro, Georgia, was closed by the Office of the Comptroller of the Currency. Heritage Bank of the South, Albany, Georgia, is assuming all of the deposits of First Southern National Bank. As of June 30, 2011, First Southern National Bank had approximately $164.6 million in total assets and $159.7 million in total deposits.

Public Savings Bank, Huntingdon Valley, Pennsylvania, was closed by the Pennsylvania Department of Banking. Capital Bank, National Association, Rockville, Maryland, will assume all of the deposits of Public Savings Bank. As of June 30, 2011, Public Savings Bank had approximately $46.8 million in total assets and $45.8 million in total deposits.

Depositors of the closed banks automatically become depositors of the banks which have assumed the failed banks' deposits. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.

Depositors can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.