Five more banks failed in the US; tally rose to 45
30 Jun 2009
US regulators have closed five more failed banks during the weekend - Community Bank of West Georgia; Neighborhood Community Bank, Newnan; Horizon Bank, Pine City; MetroPacific Bank, Irvine; and Mirae Bank, Los Angeles - bringing the year's total till now to 45.
The Community Bank of West Georgia, Villa Rica, Georgia, became the 41st US bank to fail this year, and the eighth in Georgia, since Southern Community Bank, Fayetteville, went under on 19 June 2009.
The bank's customers are advised by the Federal Deposit Insurance Corporation (FDIC) to bank with United Community Bank, Blairsville, Georgia.
As on 15 May 2009, Community Bank had total assets of $199.4 million and deposits of $182.5 million. At the time of closing, the bank had approximately $1.1 million in deposits that exceeded the insurance limits.
The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $85 million.
Meanwhile, the FDIC has entered into a purchase and assumption agreement with CharterBank, West Point, Georgia, to assume all of the deposits of failed Neighborhood Community Bank, Newnan, Georgia.
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