Two Banks Fail; 2012 Tally at 15
By Philip van Doorn - 03/23/12 - 6:44 PM EDTNEW YORK (TheStreet) -- State regulators on Friday closed banks in Georgia and Illinois, bringing this year's failure tally to 15. Both failed banks were previously included in TheStreet's fourth-quarter Bank Watch List of undercapitalized institutions, based on regulatory data provided by HighlineFI.
Covenant Bank & TrustThe Georgia Department of Banking and Financial shut down Covenant Bank & Trust of Rock Spring, which had $95.7 million in total assets and $9.06 million in deposits. The Federal Deposit Insurance Corp. was appointed receiver, and sold the failed institution to Stearns Bank, NA, of St. Cloud, Minn. The FDIC agreed to share losses on $71.6 million of the assets acquired by Stearns Bank and estimated the cost of Covenant Bank & Trust's failure to the deposit insurance fund would be $31.5 million. Covenant Bank & Trust's two offices were scheduled to reopen Monday, as branches of Stearns Bank.
Premier BankThe Illinois Department of Financial and Professional Regulation closed Premier Bank of Wilmette, which had $268.7 million in total assets and $199.0 million in deposits. The FDIC was appointed receiver, and sold the failed bank to International Bank of Chicago. The FDIC estimated the cost of Premier's failure to the deposit insurance fund would be $64.1 million. Premier Bank's two branches were set to reopen during normal business hours, beginning Saturday, as branches of International Bank of Chicago.
Thorough Bank Failure CoverageThere have now been four bank failures this year in Georgia, and three in Illinois. All 427 previous bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
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