November 12 regulators closed two banks in Georgia and one bank in Arizona, bringing the number of U.S. banks that fall crippled to adverse loans and tepid economy to 146.
Darby Bank &Trust Co. based in Vidalia, with $657.7 million in assets, and Tifton Banking Co. of Tifton, with 143.7 million in assets for banks take over by Federal Deposit Insurance Corp. in Georgia. While in Arizona Copper Star Bank, based in Scottsdale with assets of $204 million.
FDIC and Ameris Bank based in Moultrie, GA agreed to share losses of $560.2 million of both failed banks in Georgia. Ameris Bank assumes assets and deposits of both banks. Stern Bank, based in St. Cloud, Minn., assumed the deposits and assets of Copper Star Bank the failed bank of Arizona, FDIC and Stern Bank is sharing the losses of the failed bank totaling $165.2 million.
Georgia has seen bank failures twofold this year alone, some parts of the communities in Georgia are still trying to cope with the financial meltdown bringing on a cave in of serious debt loans. Counting the two bank failures of Friday brings the total number of failures in Georgia alone this year to 18.
The 146 failed banks this year has shuttered last year’s record of 140.
The growing number of bank failures have taken billions from the FDIC fund, last year the deposit insurance fund fall into the red with a deficit of 15.2 billion as of June 30.
FDIC expects to see more bank failure in the future and has estimated the bank failure to total around $52 billion from now until 2014.
Associate Press Writer Regulators Close 2 Banks in Georgia and 1 In Arizona CBS News