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Two Failed Banks Closed by State Regulators

December 16, 2008

Two banks in Georgia and Texas, which together have more than $600 million in total assets, have failed and been closed by banking regulators, according to BankInfoSecurity.com. In both cases, the Federal Deposit Insurance Corp. (FDIC) was named receiver.

The Haven Trust Bank in Duluth, Ga., was shut down by the Georgia Department of Banking and Finance, while Sanderson State Bank in Sanderson, Texas, was closed by the Texas Department of Banking.

In the case of Haven Trust, Branch Banking & Trust (BB&T) of Winston-Salem, N.C. assumed all of the failed bank's deposits, including those exceeding the insurance limit.

Haven Trust was the 24th bank to fail this year, and had total assets of $572 million and deposits of $515 million. BB&T assumed all of the deposits for $112,000. It also bought $55 million of the failed bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $200 million.

In the case of Sanderson State Bank, the Pecos County State Bank, Fort Stockton, Texas, will assume all of the failed bank's deposits.

Sanderson State, the 25th bank to fail this year, had total assets of $37 million and deposits of $27.9 million. The Pecos County State Bank will assume all of the deposits for a 0.55 percent premium and will also purchase $3.8 million of assets. The FDIC estimates the cost to the Deposit Insurance Fund will be $12.5 million.

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