Friday, September 23, 2016

FDIC Closes Bank in Arkansas; Fifth Failed Bank of 2016

by Bill McBride on 9/23/2016 06:33:00 PM

From the FDIC: Today's Bank, Huntsville, Arkansas, Assumes All of the Deposits of Allied Bank Mulberry, Arkansas

Allied Bank, Mulberry, Arkansas, was closed today by the Arkansas State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Today's Bank, Huntsville, Arkansas, to assume all of the deposits of Allied Bank.
...
As of June 30, 2016, Allied Bank had approximately $66.3 million in total assets and $64.7 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.9 million. ... Allied Bank is the fifth FDIC-insured institution to fail in the nation this year and the first in Arkansas. The last FDIC-insured institution closed in the state was First Southern Bank, Batesville, Arkansas, on December 17, 2010.
The FDIC closed 8 banks last year, and is on pace for 6 or 7 in 2016. The number of failures this year will probably be the lowest since 2007 (3 failures).