Georgia, Colorado and Kansas Banks Shut By Feds

Last Friday, some regulators ended up shutting down banks located in the Kansas, Colorado and Georgia states citing twenty failures of these federally insured banks for the year. There are more of them that will succumb to this prolonged recession. The FDIC or the Federal Deposit Insurance Corporation was also appointed as the receiver of these failed banks.

Bank Backgrounds

The First City Bank located in Stockbridge, Ga., had around two hundred and ninety seven million dollars worth of assets as well as two hundred and seventy eight million dollars worth of deposits around March 18 2009. Colorado National Bank located in Colorado Springs, Colorado, had around one hundred twenty three point five million dollars worth of assets as well as total deposits that are around eighty two point seven million dollars ever since December 31 of last year in 2008. Meanwhile, Teambank N.A. located in Paola Kansas reportedly had assets of around six hundred and sixty nine point eight million as well as total deposits of around four hundred and ninety two point eight million since December 31 of last year.

The Federal Deposit and Insurance Corporation will be mailing the checks to the depositors who had accounts with First City Bank for the insured funds this coming Monday morning. The Direct depositors that came from the federal government, like the Social Security and the veterans’ benefits payments, shall then be moved on to the Sun Trust Bank. At the time of First City Bank’s closing, it had around seven hundred and seventy eight thousand dollars worth of deposits that will exceed their insurance limits, according to the Federal Deposit and Insurance Corporation. The regular deposit accounts of the bank are said to have been insured up to two hundred and fifty thousand dollars. In Amarillo, Texas, the Herring Bank will then assume a good number of the deposits made by Colorado National, which has four branches that will reopen under the Herring Bank name this coming Saturday.

FDIC Takes Charge

The Federal Deposit and Insurance Corporation also mentioned that it will keep the remaining assets of the bank for any future sales. Aside from this, the Herring Bank will also enter into an agreement on loss sharing with the Federal Deposit and Insurance Corporation. In this kind of agreement, the DIC will then assume around eighty percent of all the losses made and Herring Bank will assume around twenty percent of these losses for a total of sixty two million worth of assets. The seventeen branches of Teambank will then reopen this coming Saturday under the branches of another bank called Great Southern Bank. This bank will assume around four hundred and seventy four million dollars worth of deposits for Teambank and also around four point seven million dollars, while the FDIC will be paying out eighteen point eight million dollars worth of deposits to its brokers.