Time to Blow the Dust Off this Oldie: 8/19 Bank Failure Friday Returns!

by John Galt
August 19, 2016 19:30 ET

How long has it been?

Hulk-Hogan-Dolly-Confetti-hulk-hogan-gifs

Yup, I had to have Hulk Hogan blow the dust off Dolly Parton to find the appropriate theme.

Tonight, for the first time in a long, long time, we have an actual by golly bank failure, only the fourth this year believe it or not. From the FDIC website:

United Bank, Zebulon, Georgia, Assumes All of the Deposits of The Woodbury Banking Company, Woodbury, Georgia

FOR IMMEDIATE RELEASE
August 19, 2016

The Woodbury Banking Company, Woodbury, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all of the deposits of The Woodbury Banking Company.

The sole branch of The Woodbury Banking Company will reopen as a branch of United Bank during its normal business hours. Depositors of The Woodbury Banking Company will automatically become depositors of United Bank. 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 The Woodbury Banking Company should continue to use their existing branch until they receive notice from United Bank that it has completed systems changes to allow other United Bank branches to process their accounts as well.

This evening and over the weekend, depositors of The Woodbury Banking Company can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2016, The Woodbury Banking Company had approximately $21.4 million in total assets and $21.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, United Bank agreed to purchase approximately $17.8 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-894-3219. The phone number will be operational this evening until 9:00 p.m., Eastern Time (ET); on Saturday from 9:00 a.m. to 6:00 p.m., ET; on Sunday from noon to 6:00 p.m., ET; on Monday from 8 a.m. to 8 p.m., ET; and thereafter from 9:00 a.m. to 5:00 p.m., ET. Interested parties also can visit the FDIC’s Web site at https://www.fdic.gov/bank/individual/failed/woodburybank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.2 million. Compared to other alternatives, United Bank’s acquisition was the least costly resolution for the FDIC’s DIF. The Woodbury Banking Company is the fourth FDIC-insured institution to fail in the nation this year and the first in Georgia. The last FDIC-insured institution closed in the state was The Bank of Georgia, Peachtree City, on October 2, 2015.

The good news it’s only $5.2 million. The bad news is that the regime will not act on the hundreds of other local and regional banks which are really in deep trouble thanks to  Obama’s insanity and Yellen’s inept policies. Good thing it’s a relatively young bank only established in 1902 unlike the various other ones supported by Obama and his cronies.

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