News & Analysis » US

U.S. Bank Failures Reach 96

(RTTNews) - Regulator on Friday closed three banks in Florida, two in South Carolina and one in Michigan, taking the total number of bank failures to 96 so far this year.

Woodlands Bank, Bluffton, South Carolina, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corp. as receiver. The FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Woodlands Bank.

As of March 31, Woodlands Bank had about $376.2 million in total assets and $355.3 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Woodlands Bank. In addition to assuming all of the deposits of the failed bank, Bank of the Ozarks agreed to purchase essentially all of the assets.

Metro Bank of Dade County, Miami, Florida; Turnberry Bank, Aventura, Florida; and First National Bank of the South, Spartanburg, South Carolina, were closed today by federal and state banking agencies, which then appointed the Federal Deposit Insurance Corp. as receiver for all three institutions. The FDIC entered into purchase and assumption agreements with NAFH National Bank, Miami, Florida, a newly-chartered bank subsidiary of North American Financial Holdings, Inc., Charlotte, North Carolina, to assume all the deposits and essentially all the assets of the three failed institutions.

As of March 31, Metro Bank of Dade County had total assets of $442.3 million and total deposits of $391.3 million; Turnberry Bank had total assets of $263.9 million and total deposits of $196.9 million; and First National Bank of the South had total assets of $682.0 million and total deposits of $610.1 million. NAFH National Bank did not pay the FDIC a premium for the deposits of the failed banks. In addition to assuming all the deposits from the two Florida institutions and one South Carolina institution, NAFH National Bank will purchase virtually all their assets.

Olde Cypress Community Bank, Clewiston, Florida, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corp. as receiver. The FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits of Olde Cypress Community Bank.

As of March 31, Olde Cypress Community Bank had about $168.7 million in total assets and $162.4 million in total deposits. CenterState Bank of Florida did not pay the FDIC a premium for the deposits of Olde Cypress Community Bank. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, N.A. agreed to purchase essentially all of the assets.

Mainstreet Savings Bank, FSB, Hastings, Michigan, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corp. as receiver. The FDIC entered into a purchase and assumption agreement with Commercial Bank, Alma, Michigan, to assume all of the deposits of Mainstreet Savings Bank, FSB.

As of March 31, Mainstreet Savings Bank had about $97.4 million in total assets and $63.7 million in total deposits. Commercial Bank will pay the FDIC a premium of 1.13% to assume all of the deposits of Mainstreet Savings Bank. In addition to assuming all of the deposits of the failed bank, Commercial Bank agreed to purchase essentially all of the assets.

With 96 closures so far, the total number of bank failures this year is likely to cross last year's figure of 140, which was the highest since 1992 when the savings and loan crisis was at its peak. Twenty-five banks failed in 2008 and only three failed in 2007.