Four Banks Fail To Tune Of $358.8M

Four banks insured by the Federal Deposit Insurance Corp. (FDIC) were shuttered Friday, costing the agency's insurance fund approximately $358.8 million.

The costliest failure belonged to Greenwood, Colo.-based Community Banks of Colorado, at approximately $224.9 million. Kansas City-based Bank Midwest NA assumed the deposits and assets, which totaled $1.38 billion and $1.33 billion, respectively, at the end of June. A loss-share transaction between Bank Midwest and the FDIC covers approximately $714.2 million of the failed bank's assets.

Regulators also closed Decatur, Ga.-based Decatur First Bank, whose assets and deposits were assumed by Atlanta-based Fidelity Bank. Decatur First Bank's assets totaled $191.5 million at the end of June, and Fidelity Bank and the FDIC entered into a loss-share agreement on $111.5 million of the assets.

Also in Georgia, state regulators closed Jonesboro-based Community Capital Bank. Macon, Ga.-based State Bank and Trust Co. agreed to take the failed bank's assets and deposits, with an FDIC loss-share transaction covering $141.3 million of Community Capital Bank's assets. The failed bank's assets and deposits were estimated to be $181.2 million and $166.2 million, respectively, at the end of June.

Lastly, state regulators in Florida closed Clearwater-based Old Harbor Bank, whose assets and deposits – $215.9 million and $217.8 million, respectively, at the end of June – were assumed by Boca Raton, Fla.-based 1st United Bank. A loss-share agreement between the FDIC and 1st United Bank covers $155.6 million of the failed bank's assets.

The four banks bring the total number of FDIC-insured bank failures to 84 for the year.

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