) -- 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
of undercapitalized banks and thrifts, based on first-quarter regulatory data provided by
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
. Two other former Bank of America executives are among the new holding company's senior managers, along with a former
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 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.
The failed banks had a total of 51 offices, which were set to reopen during normal business hours as branches of NAFH National Bank.
The OTS closed
of Bluffton, S.C., which had $376 million in total assets. The FDIC arranged for
Bank of the Ozarks
to assume the failed bank's assets and deposits, charging no premium for the deposits.
The FDIC agreed to share in losses on $289 million of the acquired assets and estimated the cost of Woodlands Bank's failure to the deposit insurance fund would be $115 million. The eight branches of Woodlands Bank were scheduled to reopen Monday as Bank of the Ozarks branches.
Olde Cypress Community Bank
The OTS took over
Olde Cypress Community Bank
of Clewiston, Fla. and appointed the FDIC receiver. The FDIC arranged for
CenterState Bank of Florida, NA
to assume the failed institution, paying no premium on deposits. The acquiring bank is a subsidiary of
CenterState Banks of Florida
Olde Cypress Community Bank had $169 million in total assets when it failed. The FDIC agreed to share in losses on $128 million and estimated the cost to the deposit insurance fund would be $21.5 million.
Olde Cypress's four offices were scheduled to reopen Saturday as CenterState branches.
Mainstreet Savings Bank
The OTS also shuttered
Mainstreet Savings Bank
of Hastings Mich., and the FDIC sold the failed institution's $63.7 million in deposits for a 1.13% premium to
of Alma, Mich., which is held by
Commercial National Financial
Mainstreet Savings Bank had $97.4 million in total assets when it failed, and the FDIC agreed to share in losses on $77.1 million and estimated the cost of the failure to the deposit insurance fund would be $11.4 million.
Mainstreet's two offices were scheduled to reopen Saturday as Commercial Bank branches.
Ongoing Bank Failure Coverage
Including Friday's three failures, Florida leads all states this year with 17 bank closures. The largest failure in the state during 2010 was
of Fort Pierce, which had $3.4 billion in total assets when it was closed by the OCC in April. The failed institution was acquired -- along with two other failed Florida banks -- by
, which entered into a 50/50 loss sharing agreement with the FDIC.
There have been three failures in South Carolina this year. In addition to the two on Friday,
Beach National Bank
of Myrtle Beach was shut down in April and acquired by
Michigan has now had four bank failures this year, the largest being
New Liberty Bank
of Plymouth, Mich., which failed in May and was taken over by
Bank of Ann Arbor
All previous bank and thrift failures since the beginning of 2008 are detailed in
interactive bank failure map:
The bank failure map is color-coded, with the states having the greatest number of failures highlighted in red, and states with no failures in gray. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click on the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.
Written by Philip van Doorn in Jupiter, Fla.
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.