Carrie Bay | 12.15.08

Two more community banks have fallen under the pressures of the country's economic and housing crises, bringing the total number of institutions on the Federal Deposit Insurance Corporation's (FDIC's) failed bank list to 25 in 2008. Haven Trust Bank in Duluth, Georgia, and Sanderson State Bank in Sanderson, Texas, were both shut down on Friday.

Branch Banking & Trust (BB&T) of Winston-Salem, North Carolina, stepped in to assume all of Haven Trust Bank's deposits, including those that exceeded the insurance limit. The four branches of Haven Trust were reopened this morning as branches of BB&T.

Haven Trust had total deposits of $515 million and total assets of $572 million. BB&T agreed to assume all of the deposits for $112,000, and will purchase $55 million of the failed bank's assets. Haven Trust is the fifth bank in Georgia to go under so far this year.

The FDIC entered into a purchase and assumption agreement with the Pecos County State Bank of Fort Stockton, Texas, to assume all of Sanderson State Bank's deposits, including those that exceeded the deposit insurance limit. Sanderson State Bank's sole office was reopened today as a branch of Pecos County State Bank.

Sanderson State Bank had total deposits of $27.9 million and total assets of $37 million. Pecos County State Bank agreed to assume all of the deposits for a .55 percent premium. In addition, Pecos County State Bank will purchase approximately $3.8 million of the insolvent bank's assets, and will have the option to purchase owned premises and equipment, the FDIC said.

Sanderson State Bank is the second bank to go under in Texas this year. The last bank to be closed in the state was Franklin Bank in Houston, on November 7.

The FDIC estimates that the cost to its Deposit Insurance Fund for the failure of Haven Trust Bank will be $200 million. For, Sanderson State Bank it is expected to be $12.5 million. To view the FDIC's failed bank list, click here.