More banks and now two credit unions were taken over at closing on Friday.
The three banks taken over by the FDIC are FirstCity Bank of Stockbridge, GA, Teambank National Association of Paolo, KS, and Colorado National Bank of Colorado Springs, CO.
FirstCity Bank will not reopen on Monday under a different name. The other two failed banks will reopen. Teambank National Association will reopen as Great Southern Bank and the Colorado National Bank will reopen as Herring Bank.
There were no takers for FirstCity.
A message on First City’s website said that “an assuming bank could not be located.”
According to a representative from the FDIC, the assets of the failed bank in Georgia were not attractive to buyers. “There was no franchise value,” wrote David Barr, spokesperson for the FDIC, in an email. “More than half the deposits were out of area and the assets were highly concentrated in development loans. We had interest until they saw the deposit and asset make up.”
Direct deposits from the federal government – like Social Security and Veterans’ payments – to First City account holders will go directly to SunTrust Bank.
First City customers with brokered deposits need to be in touch with their brokers. The FDIC will reimburse insured, brokered deposits after the brokers provide the FDIC with the appropriate documentation.
The two credit unions that went under were not consumer credit unions but were corporate credit unions.
U.S. Central Federal Credit Union in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., were placed under conservatorship “to stabilize the corporate credit union system and resolve balance sheet issues,” according to the National Credit Union Administration.
Neither of the failed institutions serve consumers directly. As corporate credit unions, they service the credit union system. Credit unions count 90 million members nationwide.
Members of the two credit unions will not experience any disruption in service and are free to make deposits and access funds, according to the regulator.
The total of failed banks this year to date is 20. The two failed credit unions were the first of the year.
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