Bank Failure Friday hits Georgia again

From the FDIC:

Sunrise Bank, Valdosta, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Synovus Bank, Columbus, Georgia, to assume all of the deposits of Sunrise Bank. […]

As of March 31, 2013, Sunrise Bank had approximately $60.8 million in total assets and $57.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, Synovus Bank agreed to purchase approximately $13.2 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition. […]

The FDIC estimates that cost to the Deposit Insurance Fund will be $17.3 million. Compared to other alternatives, Synovus Bank was the least costly resolution for the FDIC’s DIF. Sunrise Bank is the 12th FDIC-insured institution to fail in the nation this year, and the third in Georgia. The last FDIC-insured institution closed in the state was Douglas County Bank, Douglasville, on April 26, 2013.

As we’ve noted here before, the pace of bank failures has declined dramatically over the last year, but there are still dozens of Georgia banks under some sort of heightened regulator scrutiny. Georgia obviously still leads the nation in bank failures in the aftermath of the financial crisis and the housing bust.

4 comments

  1. xdog says:

    Sunrise started business in June 2006 so they made it almost seven years.

    They had branches in Jeffersonville and Atlanta, which I’m sure was convenient for their stockholders. They’ve been bleeding money, couldn’t raise more capital, never showed they knew anything running a bank, should never have been issued a charter. Nothing really new.

  2. xdog says:

    Sunrise was the second closed bank of the day that was controlled by Capitol Bancorp. The FDIC shuttered one in Asheville NC too.

    “At December 31, 2012, Capitol operated nine state chartered banks, one federal savings bank and one national bank that have combined total assets of $1.6 billion. All of the 11 banks controlled by Capitol Bancorp are on the unofficial Problem Bank List and eight are operating under Prompt Corrective Action notices.”

    Friday you could buy a share of CB for 9 cents. That seems high.

    http://problembanklist.com/sunrise-bank-ga-closed-as-regulators-zero-in-on-capitol-bancorp-0622/

  3. seenbetrdayz says:

    I kind of wish they’d just skip to the part where we all do business with one gigantic out-of-control monopolized bank since that seems to be the direction we’re headed in anyway.

    I’m kicking around some marketing ideas.

    Bank of The Universe.™ We may be ridiculously big and you might think we don’t care about you, and well, actually we don’t.

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