Edward Palonek Announces 3 More Banks Were Closed By Federal Deposit Insurance Corporation

Oct. 24, 2012 - PRLog -- These 3 new bank closures now bring the total bank failures in 2012 to 46. When a bank or a savings and loan institution closes down, the Federal Deposit Insurance Corporation (FDIC) is appointed receiver, so that they can sell off the institutions assets and refund the unclaimed deposits to people that had accounts with them.

The first bank is Excel Bank, from Sedalia, Missouri. The Missouri Division of Finance closed the bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. This was the third bank in Missouri to close down this year.

The FDIC sold the four Excel Bank branches to Simmons First National Bank and they will keep all four open. All Excel Bank customers will now automatically become customers of Simmons First National Bank and their deposits will continue to be insured by the FDIC.

Excel Bank had approximately $200.6 million in total assets and $187.4 million in total deposits, since June 30, 2012. The cost to the Deposit Insurance Fund is estimated to be slightly more than $40 million by the FDIC.

The next bank closure was First East Side Savings Bank, from Tamarac, Florida. This is the seventh in Florida to close down in 2012.  The Federal Deposit Insurance Corporation (FDIC) was appointed the receiver by the Office of the Comptroller of the Currency.

First East Side Savings Bank only had one branch which will remain open after the sale to Stearns Bank. Depositors of First East Side Savings Bank will automatically become depositors of Stearns Bank.

As of June 30, 2012, First East Side Savings Bank reported approximately $67.2 million in total assets and $65.9 million in deposits. This bank closure will cost the DIF approximately $9 million.

The final bank to close in October was GulfSouth Private Bank, located in Destin, Florida. The Florida Office of Financial Regulation appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

There are four branches of GulfSouth Private Bank which will now become SmartBank after they purchased the assets from FDIC.

GulfSouth Private Bank had approximately $159.1 million in total assets, while their deposits were $151.1 million. This bank failure will cost the Deposit Insurance Fund about $36.1 million.

In all of the three bank failures, deposits will continue to be insured by the FDIC, after the change over to the new banks and depositors will retain their deposit insurance coverage up to applicable limits.
“Each deposit holder is issued for up to $250,000 per insurance banks. After a bank failure, unclaimed insured deposits and dividends can still be claimed”, says Edward Palonek, who is the founder of an online unclaimed money search service called foundmoney.com,  which specializes in providing information on the whereabouts of unclaimed and forgotten money, since 1995.

According to reports from the FDIC, there are currently 46 bank failures in 2012. Past years had 92 bank failures in 2011, while 157 failures were reported in 2010. 2012 is looking like a better year, which is most likely attributed to a better economy in the USA.

Thus far in 2012, the FDIC evaluated 80 state nonmember banks for compliance under the Community Reinvestment Act (CRA) and found only one that needs to improve.

“It is quite common for accounts and dividend checks to remain unclaimed. The dividend checks then end up getting returned since the depositor failed to notify the previous bank of their move, so the address that the bank once had is no longer valid”, says Palonek.

Contact

Edward Palonek
Blog.edwardpalonek.biz
Blog.edwardpalonek.info