6 banks fail, tally reaches 130

Bank disaster total reaches 130

Regulators shutter Cleveland-based AmTrust Bank, as well as 5 other banks. Closures will price a FDIC $2.384 billion.

By Hibah Yousuf, CNNMoney.com staff reporterLast Updated: Dec 4, 2009: 7:22 PM ET Map Bank failures as well as foreclosures keep mounting Last quarter, a manage to buy grew by a largest volume since a summer of 2007, though there have been signs that things have been still getting worse.What have been we you do this Thanksgiving weekend?

• Staying home as well as you do little
• Shopping for legal holiday bargains
• Traveling
• Working

NEW YORK (CNNMoney.com) -- The nation's total of 2009 bank casualties hit 130 Friday when regulators shuttered a vast Ohio bank, an Illinois bank, a Virginia bank as well as 3 tiny Georgia banks.

The largest bank to destroy was AmTrust Bank in Cleveland.

Regulators additionally sealed Benchmark Bank in Aurora, Ill., as well as Greater Atlantic Bank in Reston, Va.

The Buckhead Community Bank in Atlanta, Ga., First Security National Bank in Norcross, Ga., The Tattnall Bank in Reidsville, Ga., were additionally closed.

Customers of all a 6 catastrophic banks have been protected, however. The Federal Deposit Insurance Corp., that has insured bank deposits since a Great Depression, now covers customer accounts up to $250,000.

AmTrust Bank. The Office of Thrift Supervision sealed AmTrust Bank since it "was in an vulnerable as well as unsound condition since of substantial loan losses, deteriorating item quality, as well as insufficient capital."

The group pronounced a catastrophic bank's core capital declined 68% in a 12-month period finale Sept. 30, as well as a high turn of AmTrust's item problems were due to residential as well as land acquisition, development, as well as building a whole lending in Florida, California, Arizona as well as Nevada.

AmTrust operated underneath a agency's authorized risk reduction devise since a start of 2009, though a bank was incompetent to imitate with a smallest capital requirements, a OTS said.

The group pronounced attempts to find an financier to recapitalize a bank, that was first determined in 1889 as The Ohio Savings as well as Loan Company, were unsuccessful.

New York Community Bank in Westbury, N.Y., will pretence AmTrust Bank's $8 billion in deposits as well as squeeze $9 billion of a catastrophic bank's $12 billion in assets, according to a FDIC.

The 66 branches of AmTrust Bank located throughout Ohio, Florida as well as Arizona employ 1,728 workers as well as will free as branches of New York Community Bank.

Benchmark Bank. MB Financial Bank, National Association, in Chicago will pretence Benchmark Bank's $181 million in deposits as well as will squeeze "essentially all" of a bank's $170 million in assets, according to a FDIC. MB Financial Bank, National Association entered in to a loss-share agreement with a FDIC upon $139 million of a catastrophic bank's assets.

The 5 branches of Benchmark Bank will free as branches of MB Financail Bank, National Association.

Greater Atlantic Bank. Sonabank in McLean, Va., will pretence Greater Atlantic Bank's $179 million in deposits, as well as will squeeze "essentially all" of a bank's $203 million in assets, a FDIC said. Sonabank entered a loss-share agreement with a FDIC upon $145 million of a catastrophic bank's assets.

The 4 branches of Greater Atlantic Bank will free as branches of Sonabank.

Georgia banks. State Bank as well as Trust Company in Macon, Ga., will pretence The Buckhead Community Bank's $838 million in deposits as well as squeeze "essentially all" of a bank's $874 million in assets, according to a FDIC. State Bank as well as Trust Company additionally entered in to a loss-share agreement with a FDIC upon $692 million of a catastrophic bank's assets.

The Buckhead Community Bank will free as State Bank as well as Trust Company, as will a 6 branches in Georgia operating underneath a following names: The Sandy Springs Community Bank, The Midtown Community Bank, The Alpharetta Community Bank, a Cobb Community Bank, The Forsyth Community Bank as well as The Hall Community Bank.

State Bank as well as Trust Company will additionally pretence First Security National Bank's $123 million in deposits, according to a FDIC, as well as squeeze approximate $118 million of a catastrophic bank's $128 million in assets, a FDIC said. State Bank as well as Trust Company additionally entered in to a loss-share agreement with a FDIC upon $82.4 million of First Security National Bank's assets.

The 4 branches of First Security National Bank will free as branches of State Bank as well as Trust Company.

HeritageBank of a South in Albany, Ga., will pretence The Tattnall Bank's $47.3 million in deposits as well as squeeze $48.5 million of a catastrophic bank's $49.6 million in assets.

The dual branches of The Tattnall Bank will free as branches of HeritageBank of a South.

Customers of a catastrophic banks can entrance their money over a week end by writing checks or regulating ATMs or debit cards. Checks will go on to be processed, as well as borrowers should have debt as well as loan payments as usual.

The FDIC additionally pronounced business should go on to make use of their existing branch until they embrace notice that a takeover has been completed.

FDIC's fund. An normal of eleven banks have catastrophic per month this year, as well as a federal agency's deposition word account has slipped in to a red for a first time since 1991.

At a end of a entertain upon Sept. 30, a worth of a account was $8.2 billion in a hole, though a figure includes $21.7 billion a group has accounted for destiny bank failures. Friday's closures will price a FDIC an estimated $2.384 billion.

After recently commendatory a magnitude for banks to repay their word premiums over a subsequent 3 years, however, a FDIC expects to raise $45 billion. The move expects to send a account back in black in 2012.

The bank disaster count for 2009 is still far from 1989's jot down high of 534 bank closures that took place during a savings as well as loan crisis, when a word account additionally carried a disastrous balance.

The total is nearly 5 times a series that catastrophic in 2008, as well as a highest total since 1992 when 181 banks failed.

Last week, a FDIC announced that 552 banks have been during risk of going under, a highest turn since 1993, when a group had red-flagged 575 banks.

But history has shown only 13% of a supposed "problem" banks have catastrophic upon average.

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