State regulators shut down the CapitalSouth Bank and handed over its reigns to the FDIC on Friday, August 21st, marking the 80th bank failure in 2009.
Iberiabank Corp of Lafayette Lousiana will take over 10 branches of CapitalSouth Bank on Monday as well. Capital South only had $546 million in deposits for over $617 million in assets. According to the FDIC, the failure will cost them approximately $151 million.
Meanwhile, two other Georgia financial institutions were shut down over the weekend. eBank, located in Atlanta, had $143 million and assets and only $130 million in deposits. First Coweta, located in Newman, GA had over $167 million in assets and only $155 million in deposit. The Federal Deposit Insurance Corporation (FDIC) has taken over all 3 institutions.
The FDIC has found other institutions to absorb the other two failed banks. United Bank of Zebulon, GA will take open First Coweta’s four branches on Monday and share the losses of the bank failure with the FDIC. First Coweta’s failure will cost the FDIC’s deposit fund $48 million. eBank’s assets will be transferred to Stearns Bank of St. Cloud Minnesota. The closing of eBank will cost the FDIC’s insurance fund $63 million or 48% of eBank’s total deposits.
There have been a total of 18 banks in Georgia that have failed this year, or 23% of the total number of failures in the country.
Anyone that has done business with these failed banks can contact the FDIC at 1-877-894-4710 or visit the FDIC’s website at www.fdic.gov for additional information and instructions.
