FDIC shutters 3 banks in 3 states

The Federal Deposit Insurance Corp. said Friday that it closed Putnam State Bank in Palatka, Fla., Security Exchange Bank, in Marietta, Ga., and The Farmers Bank of Lynchburg, in Lynchburg, Tenn.

The FDIC lined up other lenders to assume the deposits and assets of each of the banks.

Regulators estimate that the failure of the three banks will cost the insurance fund $100 million.

Putnam State Bank, which had three branches, had about $169.5 million in assets and $160 million in deposits as of March 31.

Harbor Community Bank, in Indiantown, Fla., agreed to assume all of Putnam's deposits and to buy essentially all its assets. Regulators and Harbor Community Bank entered into a loss-share transaction on $112.3 million of Putnam State Bank's assets.

Fidelity Bank, based in Atlanta, agreed to assume Security Exchange Bank's assets and essentially all of its deposits, the FDIC said.

As of March 31, Security Exchange Bank had $147.9 million in deposits and $151 million in assets. Its two branches will reopen on Monday as Fidelity Bank locations.

The FDIC said it entered into a loss-share transaction with Fidelity Bank on $102.8 million of Security Exchange Bank's assets.

The Farmers Bank of Lynchburg's four branches will reopen under the banner of Clayton Bank and Trust, based in Knoxville, Tenn., which agreed to assume all of Farmers Bank's deposits and the bulk of its assets.