Regulators Close Two Banks; US Bank Closures Reach 15 In 2012

[Julian Englis]

Source: NASDAQ/RTT

The Federal Deposit Insurance Corp. or FDIC, announced Friday the shuttering of two small banks, one each in the states of Georgia and Illinois, taking the count of U.S. bank closures in 2012 to 15, after 92 in 2011 and the 157 bank closures in 2010. The closures are the fourth in the state of Georgia and the third in Illinois.

The two banks were closed on Friday by the regulators, with the assets of the failed banks beings assumed by other banks in FDIC assisted transactions. The FDIC estimates that the cost to the Deposit Insurance Fund or DIF, by the two bank closures will be a total of $95.6 million.

Stearns Bank, N.A., assumed the banking operations, including all the deposits, of Covenant Bank & Trust from FDIC, and International Bank of Chicago assumed from the FDIC all of the deposits of Premier Bank.

Rock Spring, Georgia-based Covenant Bank & Trust was closed by the Georgia Department of Banking and Finance. As of December 31, 2011, Covenant Bank had about $95.7 million in total assets and $90.6 million in total deposits.

Read more: http://www.nasdaq.com/article/regulators-close-two-banks-us-bank-closures-reach-15-in-2012-20120323-00949

---

The number of banks closed is at least decreasing.

[cstanleytech]

1. Not exactly a good thing though when you consider its only been the smaller banks largely

which has helped the larger banks grow even larger.