Statewide Bank closed by regulators

Published on Friday, March 12, 2010 8:35 PM CST

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Covington-based Statewide Bank was closed by regulators

Friday, becoming the state's first bank failure since 2002.

The bank's assets and deposits will be assumed by Home Bank of Lafayette.

The state Office of Financial Institutions said Statewide's six branches

will reopen Saturday as Home Bank offices.

Regulators said deposits continue to be insured by the Federal Deposit

Insurance Corp. and depositors can access their accounts, which will

automatically become Home Bank accounts.

Statewide had assets of $243.2 million and deposits of $208.8 million at

year-end 2009.

The bank is the first FDIC-insured Louisiana institution to fail since

Farmers Bank & Trust of Cheneyville failed in December 2002.

Nationwide, 30 banks have failed this year.

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Comments

4 comment(s)

Jacob wrote on Mar 19, 2010 3:07 PM:

" CPB will be next!! "

zzone wrote on Mar 15, 2010 5:23 PM:

" Then-President and CEO Matt Faust said the issue was “water under the bridge” after filing a response to the FDIC in April. Faust, a Covington city councilman at-large, was no longer listed on the Statewide Web site as part of its management team. Before the FDIC took over the Statewide Web site Friday night, the only name under the “Executive Officers” header was that of Chief Financial Officer David Pinckney.

A statement from the FDIC said it estimates the failure of Statewide will cost its insurance fund $38.1 "

zzone wrote on Mar 14, 2010 3:56 PM:

" Covingtons next Mayor?

Although federal officials did not provide specific information on the extent of Statewide’s problems, the failure comes almost a year after the FDIC issued a cease and desist order to the bank for unsafe lending practices, including operating with inadequate capital and engaging in hazardous or speculative investments.

Then-President and CEO Matt Faust said the issue was “water under the bridge” after filing a response to the FDIC in April. Faust, a Covington city councilman at-large, was no longer listed on the Statewide Web site as part of its management team. "

zzone wrote on Mar 13, 2010 2:18 PM:

" Although federal officials did not provide specific information on the extent of Statewide’s problems, the failure comes almost a year after the FDIC issued a cease and desist order to the bank for unsafe lending practices, including operating with inadequate capital and engaging in hazardous or speculative investments.
Then-President and CEO Matt Faust said the issue was “water under the bridge” after filing a response to the FDIC in April. Faust, a Covington city councilman at-large, was no longer listed on the Statewide Web site as part of its management team.
COVINGTON"S NEXT MAYOR NO WAY! "

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