Georgia, South Dakota banks bring failures to 55 in '09

[UpInArms]

Source: CBS Marketwatch

SAN FRANCISCO (MarketWatch) -- Winder, Ga.-based First Piedmont Bank and Sioux Falls, S.D.-based BankFirst were closed by regulators Friday, bringing the number of U.S. bank failures in 2009 to 55 as the credit crisis continues to claim victims.

First Piedmont Bank the 10th to fail in Georgia this year. Athens, Ga.-based First American Bank and Trust Company has agreed to assume the failed bank's deposits, according to the Federal Deposit Insurance Corp.

First Piedmont had $115 million in assets and $109 million in deposits as of July 6, the FDIC said. Its failure should cost the deposit insurance fund $29 million.

BankFirst is the first South Dakota-based bank to fail since 1992, according to the FDIC.

Grand Forks, N.D.-based Alerus Financial, National Association has agreed to assume the failed bank's deposits.

Read more: http://www.marketwatch.com/story/georgia-bank-is-54th-us-failure-of-2009-2009717183600?siteid=bnbh

[IthinkThereforeIAM]

1. South Dakota bank failed due to home loans made out of state...

..."BankFirst's failure is an isolated incident that arose from risky out-of-state loans, Ness said."

""By and large, South Dakota banks are very secure."

Sioux Falls ArgusLeader:Bank closure first in decades

[liberalhistorian]

2. Living in South Dakota, I would have to agree with that.

Our banks are, for the most part, quite secure, and we haven't had a lot of the "bankster" issues in this state that too many others have had.

[indypaul]

3. There were also 2 CA bank failures yesterday

bringing 2009 total to 57.

http://www.fdic.gov/bank/individual/failed/banklist.html