The FDIC announced on Friday the closure of The Farmers Bank of Lynchburg from Lynchburg, Tenn., the Security Exchange Bank of Marietta, Ga. and the Putnam State Bank of Palatka, Fla.
The three banks raised the total number of closures by federal regulators this year to 31. In comparison 92 banks were shuttered in 2011. In 2010 bank closures numbered 157 and in 2009 they numbered 130.
All three banks were taken over by other banks under purchase and assumption agreements, the FDIC says. The Farmers Bank of Lynchburg (asset size $163.9 million) was acquired by Clayton Bank Trust of Knoxville, Tenn., while Fidelity Bank of Atlanta, Ga. obtained Security and Exchange Bank (asset size $151 million) and Harbor Community Bank of Indiantown, Fla. secured Putnam State Bank (asset size $169.5 million).
Fidelity Bank and Harbor Community Bank entered into loss-share agreements with the FDIC over their acquisitions. As of May 18th of this year the FDIC had entered into loss-share agreements with the buyers of nine of the 24 banks that had been shuttered. In 2011 the FDIC entered into loss-share agreements with the buyers 58 of the 92 banks that were closed and in 2010 loss-share agreements were arranged with the buyers of 130 of the 157 banks that failed.
The FDIC estimates that the total cost to the federal Deposit Insurance Fund for the three closures will be $100 million.
Through May of this year the median cost to the FDIC as a percentage of the assets of the 24 banks closed up to that point was 22 percent. In 2011 and 2010 the median cost was 23 percent, down from 29 percent in 2009. At that point the 24 banks that had been closed since the beginning of the year had asset sizes between $48 and $818 million.