FDIC Shutters Four More Banks

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WASHINGTON – The FDIC shuttered three more banks on Friday, bringing to 68 the number of banks closed in 2012.

Closed were $1.7-billion Lydian Private Bank in Palm Beach, Fla. (which is expected to cost the Deposit Insurance Fund $293.2 million), with its assets sold to Sabadell United Bank; $164.6 million-asset First Southern National Bank in Statesboro, Ga., with its assets to Heritage Bank of the South, Albany, Ga. (the loss is expected to cost the Deposit Insurance Fund $39.6 million); and $141 million-asset First Choice Bank in Geneva, Ill., whose assets were sold to Inland Bank & Trust in Oak Brook, Ill. (the failure is expected to cost the Deposit Insurance Fund $31 million).

One day earlier, on Thursday of last week, the FDIC shuttered $46.8 million-asset Public Savings Bank in Huntingdon Valley, Penn., the first bank to close in Pennsylvania this year. That bank was closed on Thursday because it serves an Orthodox Jewish community and regulators wanted to avoid conflicting with the Jewish Sabbath, which begins at sundown on Friday. Capital Bank in Rockville, Md., assumed all of the deposits and agreed to buy essentially all of Public Savings Bank’s assets. The cost to the Deposit Insurance Fund is estimated to be $11 million.


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