1 Bank, 1 Credit Union Fail

Actions Raise 2011 Tally to 58 Failed Institutions
1 Bank, 1 Credit Union Fail
Federal and state banking regulators closed one bank and one credit union the week of May 30.

These latest closings raise the total number of failed institutions to 58 so far in 2011.

The latest failures are:

Atlantic Bank and Trust, Charleston, S.C.

Atlantic Bank and Trust, Charleston, South Carolina, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corp. as receiver.

The three branches of Atlantic Bank and Trust will reopen on Monday as branches of First Citizens Bank and Trust Company Inc. Depositors of Atlantic Bank and Trust will automatically become depositors of First Citizens Bank and Trust Company Inc.

As of March 31, 2011, Atlantic Bank and Trust had approximately $208.2 million in total assets and $191.6 million in total deposits. First Citizens Bank and Trust Company Inc. will pay the FDIC a premium of 0.75 percent to assume all of the deposits of Atlantic Bank and Trust. In addition to assuming all of the deposits of the failed bank, First Citizens Bank and Trust Company, Inc. agreed to purchase essentially all of the assets.

The FDIC and First Citizens Bank and Trust Company, Inc. entered into a loss-share transaction on $141.8 million of Atlantic Bank and Trust's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $36.4 million.

Valued Members Federal Credit Union, Jackson, Miss.

The National Credit Union Administration on May 31 liquidated Valued Members Federal Credit Union of Jackson, Miss. Magnolia Federal Credit Union, also of Jackson, immediately purchased and assumed Valued Members Federal Credit Union's assets, liabilities and members.

At the time of closure, the credit union had approximately $9 million in assets and served 2,000 members.


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