This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Six Banks Fail Friday

WASHINGTON ( TheStreet) -- Regulators closed six banks in three states Friday, bringing this year's total number of bank failures to 96.

All six failed institutions were included in TheStreet's Bank Watch List of undercapitalized banks and thrifts, based on first-quarter regulatory data provided by SNL Financial.

The Federal Deposit Insurance Corp. was named receiver and found buyers for all of the failed banks, agreeing to absorb 80% of losses on the riskier asset pools acquired by other institutions. Despite numerous reports that the agency is getting tightfisted and that attractive deals for failed banks are on the wane, six 80/20 loss-sharing deals in one night show that lucrative opportunities remain for stronger banks and private-equity investors.

New Miami Bank Acquires Three Failed Institutions

Three of Friday's failed banks were located in Florida. Two of the these, along with a South Carolina bank, were acquired by North American Financial Holdings of Miami, a newly formed bank holding company led by R. Eugene (Gene) Taylor, a former vice chairman of Bank of America (BAC - Get Report). Two other former Bank of America executives are among the new holding company's senior managers, along with a former Morgan Stanley (MS) executive.

According to a company release, North American Financial raised about $900 million to invest in "failed and undercapitalized banks." The Office of the Comptroller of the Currency granted the company a bank charter on March 25, which remained "on the shelf" until Friday, when the holding company formed NAFH National Bank to acquire all assets and deposits of the failed Metro Bank of Dade County of Miami; Turnberry Bank of Aventura, Fla.; and First National Bank of the South of Spartanburg, N.C. NAFH National Bank paid no premium to the FDIC for the failed banks' deposits.

Metro Bank had $442 million in total assets when it was closed by state regulators. The FDIC agreed to share in losses on $299 million of assets acquired by NAFH National Bank and estimated the cost of Metro Bank's failure to its deposit insurance fund would be $67.6 million.

Turnberry Bank was shut down by the OTS and had $264 million in assets. The FDIC agreed to share in losses on $195 million of the assets acquired by NAFH and estimated the cost to the deposit insurance fund would be $34.4 million.

First National Bank of the South was shuttered by the OCC and had $682 million in assets, with the FDIC agreeing to share in losses on $512 million. The agency estimated the cost to the deposit insurance fund from this bank failure would be $74.9 million.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CEFC $7.95 0.00%
BAC $16.00 1.01%
CSFL $11.95 1.27%
OZRK $36.50 0.25%
TD $43.32 -0.64%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs