Regulators close 8 U.S. banks with $2 billion assets

Regulators closed eight U.S.-insured banks with combined assets of $2 billion on Friday, raising the number of failed banks to 96 this year, said the Federal Deposit Insurance Corp.

NAFH National Bank of Miami will take over three of the banks, which together had 23 branches and $1.39 billion in assets. NAFH is a newly chartered bank subsidiary of North American Financial Holdings, Inc, a bank holding company based in Charlotte, North Carolina.

"Together with our planned investment in TIB Bank, today's transaction continues our progress toward building a bly capitalized, high performing, regional bank," NAFH Chairman and Chief Executive Gene Taylor said in a statement.

North American Financial Holdings says it raised $900 million in equity capital to invest in failed and undercapitalized banks. On June 29, it said it would invest $175 million in TIB Financial Corp in Naples, Florida.

The failed banks acquired by NAFH National Bank were:

  • First National Bank of the South, Spartanburg, South Carolina, with $682 million in assets and $610 million in assets.

  • Metro Bank of Dade County, Miami, with assets of $442.3 million and deposits of $391.3 million.

  • Turnberry Bank, Aventura, Florida, with assets of 263.9 and deposits of $196.9 million.

  • The three failed banks were not affiliated, said FDIC. They will reopen as branches of NAFH National Bank using their current names.

  • Two banks in South Carolina and one in Michigan also were closed. FDIC said they were:

  • Mainstreet Savings Bank, FSB, Hastings, Michigan, with $97.4 million in assets and $63.7 million in deposits. Commercial Bank, Alma, Michigan, will take over the Mainstreet, which will reopen on Saturday under Commercial's name.

  • Olde Cypress Community Bank, Clewiston, Florida, with $168.7 million in assets and $162.4 million in deposits. National Association, Winter Haven, Florida, will take over the bank, which will reopen on Saturday as a branch of CenterState.

  • Woodlands Bank, Bluffton, South Carolina, with $376.2 million in assets and $355.3 million in deposits. Bank of the Ozarks, Little Rock, Arkansas, will take over the bank and its eight branches will reopen on Monday under the name of Bank of the Ozarks.

  • FDIC entered share-loss transactions with the successor banks. It estimated the closings will cost the Deposit Insurance Fund a total of $334.8 million.

  • Seventeen banks in Florida, three in South Carolina and four in Michigan have been closed by regulators this year.
[Source: Reuters, Washington, 16Jul10]

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