The Federal Deposit Insurance Corp. said Friday that it has taken over Eastside Commercial Bank, based in Conyers, Georgia.
The bank, which operated two branches, had about $169 million in assets and $161.6 million in deposits as of March 31.
Community & Southern Bank, based in Atlanta, has agreed to assume all of the failed bank’s deposits.
The FDIC says Macon, Georgia-based State Bank and Trust Company will also buy $42.6 million of Eastside Commercial Bank’s loans.
The failure of Eastside Commercial Bank is expected to cost the deposit insurance fund $33.9 million.
U.S. bank failures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.
Only three banks went under in 2007. That jumped to 25 in 2008, after the financial meltdown, and ballooned to 140 in 2009.
In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to 92 in 2011 and fell to 51 in 2012.
In a strong economy, about four or five banks close annually.
From 2008 through 2011, bank failures cost the deposit insurance fund an estimated $88 billion, and the fund fell into the red in 2009. With failures slowing, the fund’s balance turned positive in the second quarter of 2011.The fund had a $48.9 billion balance as of March 31.
The FDIC has said it expects bank failures from 2012 through 2016 will cost the fund $10 billion.
MORE HBJ HEADLINES
Coffee, $80 a pound? Starbucks stakes out high-end grounds Briefs: Shredding event to be held at 1st Security Bank Edmonds American Airlines shows off its first Boeing 787 Dozens of American Airlines flights delayed by map glitch Mazda of Everett opens expanded, new site US economy barely grew in first quarter
Our new comment system is not supported in IE 7. Please upgrade your browser here.