Covington bank closes

Published 12:40 am Saturday, March 13, 2010

NEW ORLEANS (AP) — 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.