The Federal Deposit Insurance Corp. (FDIC) was appointed receiver for four banks that were shut down by regulators Friday.
The headline bank failure belonged to Guaranty Bank, in Austin, Texas, which was acquired by BBVA Compass, an Alabama-based division of Spanish bank BBVA Group. Birmingham, Ala.-based CapitalSouth Bank; Newnan, Ga.-based First Coweta; and Atlanta-based ebank were also shuttered.
Guaranty Bank had total assets of approximately $13 billion at the end of June. BBVA Compass agreed to buy $12 billion of the assets, $11 billion of which is structured in a loss-share agreement between BBVA and the FDIC.
The acquisition creates the 15th largest U.S. commercial bank, with approximately $49 billion in deposits, and "further demonstrates the BBVA Group's clear commitment in building its U.S. franchise," BBVA Compass Chair Jose Maria Garcia Meyer said in a company statement.
IBERIABANK, Lafayette, La., picked up $589 million of CapitalSouth Bank's assets; United Bank, Zebulon, Ga., acquired Coweta's assets for $155 million; and Stearns Bank NA, St. Cloud, Minn., agreed to purchase essentially all of ebank's assets. (Stearns Bank's loss-share agreement with the FDIC is on approximately $111 million assets.)
SOURCE: FDIC