Top Buyers of Failed U.S. Banks

Source: FDIC When a U.S. bank fails, it is up to the FDIC to ensure the stability of the failed bank's assets and deposits so that customers won't lose out when their bank of choice goes under.To do this, the FDIC can either arrange for the sale of the failed bank's assets to an existing financial institution or directly pay out the failed bank's deposits, as long as they fall within the FDIC's insurance limits. The former "Purchase and Assumption Method" is most commonly used, but requires the FDIC to find a willing buyer, and often must sell assets at a discount, which may potentially cause billions in losses to the FDIC fund.Some institutions are repeatedly tapped by the FDIC to buy up assets of failed banks, which can be an attractive situation as the purchasing bank does not necessarily have to buy all of the failed bank's assets and can see their deposits under management increase literally overnight. The rest of the assets are eventually auctioned off by the FDIC.So, which institutions have bought the most* failed U.S. banks? Click ahead to find out!By Paul ToscanoPosted 23 Oct 2009Updated 3 Nov 2009*Institutions buying the same number of banks are ranked by the size of assets belonging to the failed bank. This number is not necessarily the amount assumed by the purchasing bank.

Headquarters: Raleigh, North CarolinaFailed Banks Purchased: 2 Total Assets: $2.97 billionTotal Deposits: $2.93 billionCost to FDIC: $1.19 billionGeorgian Bank (9/25/09)Venture Bank (9/11/09)

Headquarters: Hamilton, OhioFailed Banks Purchased: 2Total Assets: $3.13 billionTotal Deposits: $2.54 billionTotal Cost to FDIC: $874 millionIrwin Union Bank and Trust (9/18/09)Irwin Union Bank, F.S.B. (9/18/09)

Headquarters: San Diego, CaliforniaFailed Banks Purchased: 2Total Assets: $3.3 billionTotal Deposits: $2.55 billionCost to FDIC: $785 millionAlliance Bank (2/6/09)Vineyard Bank (7/17/09)

Headquarters: Omaha, NebraskaFailed Banks Purchased: 2Total Assets: $3.65 billionTotal Deposits: $3.23 billionCost to FDIC: $862 millionFirst National Bank of Nevada (7/25/08)First Heritage Bank, NA (7/25/08)

Headquarters: Winston-Salem, North CarolinaFailed Banks Purchased: 2Total Assets: $25.57 billionTotal Deposits: $20.52 billionTotal Cost to FDIC: $3 billionHaven Trust Bank (12/12/08)Colonial Bank (8/14/09)

Headquarters: St. Cloud, MinnesotaFailed Banks Purchased: 4Total Assets: $681.7 millionTotal Deposits: $638.6 millionTotal Cost to FDIC: $87 millionAlpha Bank & Trust (10/24/08)Horizon Bank (6/26/09)Community National Bank of Sarasota County (8/7/09)ebank (8/21/09)

Headquarters: Chicago, IllinoisFailed Banks Purchased: 4Total Assets: $7.79 billionTotal Deposits: $7.72 billionTotal Cost to FDIC: $1.92 billionHeritage Community Bank (2/27/09)InBank  (9/4/09)Platinum Community Bank (9/4/09)Corus Bank, N.A. (9/11/09)

Headquarters: Pinehurst, GeorgiaFailed Banks Purchased: 6Total Assets: $2.79 billionTotal Deposits: $2.40 billionTotal Cost to FDIC: $1.7 billionSecurity Bank of Gwinnett County (7/24/09)Security Bank of North Fulton (7/24/09)Security Bank of North Metro (7/24/09)Security Bank of Bibb County (7/24/09)Security Bank of Houston County (7/24/09)Security Bank of Jones County (7/24/09)

Failed Banks: 7*Total Assets: $378.19 billionTotal Deposits: $236.83 billionTotal Cost to FDIC: $8.15 billionNew Frontier Bank (4/10/09)Community Bank of Nevada (8/14/09)Indymac Bank (7/11/08)Magnet Bank (1/30/09)First Bank of Beverly Hills (4/24/09)Community Bank of West Georgia (6/26/09)FirstCity Bank (3/18/09)*Over the past two years, the FDIC has either used its Deposit Insurance National Bank (an entity created by the FDIC) or directly paid out deposits of a failed institution when no buyer existed to assume the assets of a failed bank. This list represents these situations.

Headquarters: Cincinnati, OhioFailed Banks Purchased: 12Total Assets: $36.39 billionTotal Deposits: $27.87 billionTotal Cost to FDIC: $4.79 billionDowney Savings & Loan (11/21/08)PFF Bank & Trust (11/21/08)First Bank of Idaho (4/24/09)Community Bank of Lemont (10/30/09)San Diego National Bank (10/30/09)California National Bank (10/30/09)Pacific National Bank (10/30/09)Park National Bank (10/30/09)Citizens National Bank (10/30/09)Madisonville State Bank (10/30/09)North Houston Bank (10/30/09)

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