Earlier today, the FDIC was appointed as receiver of three banks: Southern Community Bank, Cooperative Bank and First National Bank of Anthony, bringing the total number of bank failures in the nation this year to 40.

The Georgia Department of Banking and Finance closed Southern Community Bank, headquartered in Fayetteville, Georgia. As receiver, the FDIC entered into a purchase and assumption agreement with United Community Bank, headquartered in Blairsville, Georgia, to assume all the deposits Southern Community Bank for a 1 percent premium. As of May 29, 2009, Southern Community Bank had total assets of $377 million and total deposits of approximately $307 million. United Community Bank also agreed to purchase approximately $364 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition. The FDIC and United Community Bank entered into a loss-share agreement covering approximately $253 million in assets of Southern Community Bank. The FDIC estimates that the cost to the Deposit Insurance Fund will be $114 million.

The North Carolina Office of Commissioner of Banks closed Cooperative Bank, headquartered in Wilmington, North Carolina. As receiver, the FDIC entered into a purchase and assumption agreement with First Bank, Troy, North Carolina, to assume all non-brokered deposits of Cooperative Bank. As of May 31, 2009, Cooperative Bank had total assets of $970 million and total deposits of approximately $774 million. First Bank also agreed to purchase approximately $942 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. With respect to the brokered deposits held by Cooperative Bank, the FDIC will pay the brokers directly for the amount of their funds. The FDIC and First Bank entered into a loss-share transaction on approximately $852 million in assets covered under the agreement. The FDIC estimates that the cost to the Deposit Insurance Fund will be $217 million.

The OCC closed First National Bank of Anthony, headquartered in Anthony, Kansas. As receiver, the FDIC entered into a purchase and assumption agreement with Bank of Kansas, headquartered in South Hutchinson, Kansas. Bank of Kansas assumed deposits at a 0.5 percent premium. As of March 31, 2009, First National Bank of Anthony had total assets of $156.9 million (of which Bank of Kansas purchased all but $200,000) and total deposits of approximately $142.5 million. The FDIC entered into a loss share transaction on approximately $130.5 million in assets covered under the agreement. The FDIC estimates the cost to the Deposit Insurance Fund will be $32.2 million.