Regulators closed four banks late last week with combined assets of $758 million, which is likely to cost the Federal Deposit Insurance Corp. $221.7 million.
Together the banks in New Jersey, Georgia, Illinois and North Carolina had $316 million in commercial real estate loans on their books.
The banks carried a hefty amount of distressed CRE loans and assets on their books for their size. The four banks reported $69 million in delinquent CRE loans, $23 million in restructured CRE loans and another $21 million in foreclosed CRE properties.
The four banks reported losing $16.3 million combined so far this year.
First State Bank
The New Jersey Department of Banking and Insurance closed First State Bank in Cranford, NJ, and appointed the FDIC as receiver. The FDIC then sold the institution to Northfield Bank in Staten Island, NY.
First State Bank operated two branches and as of June 30, 2011, had $204.4 million in total assets and $201.2 million in total deposits.
The FDIC estimates that the cost to its Deposit Insurance Fund (DIF) will be $45.8 million.
Piedmont Community Bank
The Georgia Department of Banking and Finance closed Piedmont Community Bank in Gray, GA, and appointed the FDIC as receiver. State Bank & Trust Co. in Macon, GA, then purchased substantially all of the assets and deposits of Piedmont Community Bank.
Piedmont Community operated one branch each in Gray and Macon.
As of June 30, 2011, Piedmont Community Bank reported total assets of $202 million and total deposits of approximately $181 million.
The FDIC and State Bank and Trust entered into a loss-share transaction on $163.2 million of Piedmont Community Bank’s assets. State Bank and Trust will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to its DIF will be $71.6 million.
The Illinois Department of Financial and Professional Regulation – Division of Banking closed Country Bank in Aledo, IL, and appointed the FDIC as receiver. The FDIC then sold the institution to Blackhawk Bank & Trust in Milan, IL.
Country Bank operated two branches and as of June 30, 2011, Country Bank had $190.6 million in total assets and $167.5 million in total deposits.
Blackhawk Bank & Trust agreed to purchase $113.3 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to its DIF will be $66.3 million.
Blue Ridge Savings Bank
Bank of North Carolina in Thomasville, NC, purchased Blue Ridge Savings Bank Inc. in Asheville, NC, in an FDIC-assisted transaction.
The nine North Carolina offices of Blue Ridge Savings Bank will conduct business as Bank of North Carolina, while the South Carolina office in Greer will operate as BNC Bank.
Bank of North Carolina purchased $161 million in assets and will assume substantially all of the liabilities of Blue Ridge, including $160 million in customer deposits. Bank of North Carolina did not pay a premium to the FDIC to assume the deposits of Blue Ridge.
The FDIC and Bank of North Carolina entered into a loss-share transaction on $143.2 million of Blue Ridge Savings Bank’s assets. The Bank of North Carolina will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to its DIF will be $38 million.
Mark Heschmeyer, Costar Group