Six banks fell Friday, bringing this year's total number of Federal Deposit Insurance Corp. (FDIC)-insured bank failures to 34. Together, the bank closings are expected to cost the agency's Deposit Insurance Fund approximately $588.1 million.
The biggest piece of tab goes to cover the closing of Birmingham, Ala.-based Superior Bank, which the FDIC estimates will cost $259.6 million. The FDIC entered into a purchase-and-assumption agreement with Superior Bank NA, a newly charted Birmingham-based subsidiary of Houston's Community Bancorp LLC, to acquire the failed bank's assets, which were estimated at $3 billion at the end of last year.
A second Birmingham-based bank, Nexity Bank, was closed, and its assets were sold to Alostar Bank of Commerce, which is also headquartered in Birmingham. As of Dec. 31, 2010, Nexity Bank had approximately $793.7 million in total assets.
Two banks were also closed in Georgia. East Ellijay, Ga.-based New Horizons Bank was closed, and its assets were assumed by Gastonia, N.C.-based Citizens South Bank. New Horizons Bank held approximately $110.7 million in assets at the end of last year.
Bartow County Bank, in Cartersville, Ga., was also closed, and its assets were assumed by Hamilton State Bank, Hoschton, Ga. Hamilton State Bank agreed to purchase essentially all of the assets, which totaled about $304 million as of Dec. 31.
The two other bank closings happened in Mississippi and Minnesota. State regulators closed Carthage, Miss.-based Heritage Banking Corp., and the FDIC entered into a purchase-and-assumption agreement with Jackson, Miss.-based Trustmark National Bank. As of Dec. 31, Heritage Banking Group had approximately $224 million in total assets.
Finally, the Office of the Comptroller of the Currency closed Rosemount, Minn.-based Rosemount National Bank. The FDIC entered into an agreement with Stillwater, Minn.-based Central Bank, which acquired the failed bank's assets.
SOURCE: FDIC
