The first bank failure is in Georgia, a state where many FDIC seizures have taken place.
On Friday, July 17, 2009, First Piedmont Bank, Winder, GA was closed by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
First Piedmont had $115 million in deposits. The cost to the FDIC is estimated at $29 million. More here.
The second failure was in South Dakota – Sioux Falls (where Citi has had a lot of operations for its credit card business, by the way, and where unemployment has not kicked up – 5.1% unemployment rate).
This one is a bit more complicated as two banks are getting the assets. A loss of $91 million is expected to hit the FDIC:
As of April 30, 2009, BankFirst had total assets of $275 million and total deposits of approximately $254 million. In addition to assuming all of the deposits of the failed bank, Alerus Financial, N.A. will acquire $72 million in assets, comprised of cash, securities and loans secured by deposits. The FDIC entered into a separate agreement with Beal Bank Nevada, Las Vegas, Nevada, to acquire $177 million of the failed bank’s loans. The FDIC will retain the remaining assets for later disposition.
By the way, FDIC Chairperson Sheila Bair is expecting 500 failures before this is over. So, we are nowhere near halfway through this.