Regulators close three small US banks
WASHINGTON, June 15 |
WASHINGTON, June 15 (Reuters) - Regulators shut three small banks in Florida, Georgia, and Tennessee on Friday, bringing closures this year in the United States to 31, the Federal Deposit Insurance Corporation (FDIC) said.
Florida regulators closed Putnam State Bank of Palatka. Harbor Community Bank of Indiantown agreed to buy essentially all of the approximately $169 million in Putnam State assets.
Putnam State's three branches will reopen on Saturday as Harbor Community Bank.
Georgia regulators closed the Security Exchange Bank of Marietta. Fidelity Bank of Atlanta agreed to buy essentially all of the approximately $151 million in Security Exchange assets.
The two Security Exchange branches will reopen on Monday as Fidelity Bank.
Tennessee regulators closed the Farmers Bank of Lynchburg. Clayton Bank and Trust of Knoxville agreed to purchase essentially all of the approximately $163.9 million in Farmers Bank assets.
Four Farmers Bank branches will reopen on Saturday as Clayton Bank and Trust, including one branch that operates as First State Bank of Chapel Hill, Tennessee, and two branches that operate as Oakland Deposit Bank in Oakland, Tennessee.
The pace of U.S. bank failures has slowed from the highs of the 2007-2009 financial crisis. The FDIC has said it expected 50 to 60 banks to close this year.
Smaller banks, particularly those with less than $1 billion in assets, comprise the majority of closures over the past few years.
Many of these community banks have been hit hard due to their exposure to the troubled commercial real estate market.
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