Safety and Soundness: Failed Bank Review of First Southern National Bank. Audit Report.

摘要

This memorandum presents the results of our review of the failure of First Southern National Bank (First Southern) located in Statesboro, Georgia. First Southern, a community bank, was chartered in February 2002. The Office of the Comptroller of the Currency (OCC) closed First Southern and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on August 19, 2011. As of June 30, 2011, First Southern had approximately $164.6 million in total assets and $159.7 million in total deposits. As of August 31, 2011, FDIC estimated that the loss to the Deposit Insurance Fund was $39.6 million. Because the loss to the Deposit Insurance Fund is less than $200 million, as set forth by section 38(k) of the Federal Deposit Insurance Act, we conducted a review of the failure of First Southern that was limited to (1) ascertaining the grounds identified by OCC for appointing the FDIC as receiver and (2) determining whether any unusual circumstances exist that might warrant a more in-depth review of the loss. In performing our review we (1) examined documentation related to the appointment of FDIC as receiver, (2) reviewed OCC reports of examination for the 5-year period before the bank's failure, and (3) interviewed OCC personnel.