Bankrupt Banks

Ahead of proposed financial regulation legislation from the Senate, regulators are on pace to close more delinquent banks this year than in 2009 following Friday’s closure of seven banks in five different states which brings this year’s total to 37. “The Federal Deposit Insurance Corp. took over First Lowndes Bank, in Fort Deposit, Ala.; Appalachian Community Bank in Ellijay, Ga.; Bank of Hiawassee, in Hiawassee, Ga.; and Century Security Bank in Duluth, Ga. The agency also closed down State Bank of Aurora, in Aurora, Minn.; Advanta Bank Corp., based in Draper, Utah; and American National Bank of Parma, Ohio. The FDIC was unable to find a buyer for Advanta Bank, which had $1.6 billion in assets and $1.5 billion in deposits. The regulatory agency approved the payout of the bank’s insured deposits and it said checks to depositors for their insured funds will be mailed on Monday. The failure of Advanta Bank is expected to cost the federal deposit insurance fund $635.6 million.”