Regulators close six banks; toll for year nearing the century mark

Regulators closed six banks tonight  - including three in Florida - bringing the total number of closures this year to 96.

Unusually, three of the failed banks were acquired by a single institution, NAFH National Bank in Miami.

NAFH, led by former Bank of America executive, is a new entity created for the purpose of acquiring failed banks, according to the Jacksonville Business Journal.

The Federal Deposit Insurance Corp. arranged for NAFH to acquire all of the assets and deposits of Metro Bank of Dade County in Miami, Turnberry Bank in Aventura, Fla., and First National Bank of the South in Spartanburg, S.C. The three banks collectively operated 23 branches and will resume operations under their original names.

·       Metro Bank had assetsof $442.3 million and deposits of $391.3 million

·        Turnberry Bank had assets of $263.9 million and deposits of $196.9 million; 

·        First National Bank of the South had assets of $682.0 million and deposits of $610.1 million.

 

Also closing were the eight branches of Woodlands Bank in Bluffton, S.C., which had $376.2 million in assets and $355.3 million in deposits. It will be taken over by Bank of the Ozarks, based in Little Rock, Ark. Woodlands Bank is the second failed institution to be absorbed by Bank of the Ozarks this year. In March, it took over of Unity National Bank in Cartersville, Ga., after it failed.

The Office of Thrift Supervision issued a prompt corrective action - one of the more serious forms of enforcement - against Woodlands earlier this year for being undercapitalized.

The bank was ordered to become recapitalized by either merging with or being acquired by another bank, selling off all its assets and liabilities, or selling enough stock to raise its capital ratios.

That order also noted that OTS had the authorization to market the bank to prospective merger partners or buyers.

The remaining closings Friday were:

·        Mainstreet Savings Bank FSB in Hastings, Mich. The two-branch bank had $97.4 million in assets and $63.7 million in deposits.

·        Olde Cypress Community Bank in Clewiston, Fla. The four-branch bank had $168.7 million in  assets and $162.4 million in deposits.

Commercial Bank, of Alma, Mich., bought Mainstreet Savings Bank's deposits and assets. CenterState Bank of Florida N.A. absorbed Olde Cypress' deposits and assets.

All told, the FDIC agreed to share in the losses on more than $1.3 billion of the assets the successor banks acquired from the failed ones.

 The FDIC said the six closings this week would cost its deposit insurance fund an estimated $334.8 million.

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