This week only one bank was seized. The seizure is the 45th US bank failure this year. On Friday May 3, 2011 Atlantic Bank and Trust, Charleston, South Carolina, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Atlantic Bank and Trust.
The three branches of Atlantic Bank and Trust will reopen on Monday as branches of First Citizens Bank and Trust Company, Inc, Columbia, SC. Depositors of Atlantic Bank and Trust will automatically become depositors of First Citizens Bank and Trust Company, Inc. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Atlantic Bank and Trust should continue to use their existing branch until they receive notice from First Citizens Bank and Trust Company, Inc. that it has completed systems changes to allow other First Citizens Bank and Trust Company, Inc. branches to process their accounts as well.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $36.4 million.
In addition NCUA (National Credit Union Association) announced that this past week that Valued Members Federal Credit Union, Jackson, MS was closed and it's assets were sold to Magnolia Federal Credit Union, Jackson, MS.
Valued Members was the ninth (9th) federally insured credit union liquidated so far in 2011. It was conserved by the NCUA in May after several difficult quarters.
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