7 Bank Failures 3/19: No Buyer for Biggest in Utah @ $1.6B

Regulators shut 7 banks in 5 states; 37 in 2010
Regulators shut banks in Alabama, Georgia, Minnesota, Ohio and Utah; makes 37 this year
Marcy Gordon, AP Business Writer, On Friday March 19, 2010, 8:30 pm

WASHINGTON (AP) -- Regulators on Friday shut down seven banks in five states, bringing to 37 the number of bank failures in the U.S. so far this year.

The closings follow the 140 that succumbed in 2009 to mounting loan defaults and the recession.

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.

For the other banks:

http://finance.yahoo.com/news/Regulators-shut-7-banks-in-5-a...

http://www.fdic.gov/bank/individual/failed/banklist.html

FDIC Approves the Payout of the Insured Deposits of Advanta Bank Corp., Draper, Utah

FOR IMMEDIATE RELEASE
March 19, 2010
Media Contact:
David Barr
Phone: (202) 898-6992
Cell: (703) 622-4790
Email: dbarr@fdic.gov

The Federal Deposit Insurance Corp. (FDIC) approved the payout of the insured deposits of Advanta Bank Corp., Draper, Utah. The bank was closed today by the Utah Department of Financial Institutions, which appointed the FDIC as receiver.

The FDIC was unable to find another financial institution to take over the banking operations of Advanta Bank Corp. As a result, checks to depositors for their insured funds will be mailed on Monday. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. Customers who placed deposits with brokers should contact the brokers directly for more information about the status of their funds.

As of December 31, 2009, Advanta Bank Corp. had approximately $1.6 billion in total assets and $1.5 billion in total deposits. At the time of closing, the bank had an estimated $247,000 in uninsured funds. This amount is an estimate that is likely to change once the FDIC obtains additional information from the bank's customers.

http://www.fdic.gov/news/news/press/2010/pr10058.html