New Miami Bank Acquires Three Failed InstitutionsThree 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). 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.
Woodlands BankThe OTS closed Woodlands Bank of Bluffton, S.C., which had $376 million in total assets. The FDIC arranged for Bank of the Ozarks ( OZRK) 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 BankThe 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 ( CSFL). 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 BankThe 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 Commercial Bank of Alma, Mich., which is held by Commercial National Financial ( CEFC). 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 CoverageIncluding Friday's three failures, Florida leads all states this year with 17 bank closures. The largest failure in the state during 2010 was Riverside National Bank of Florida 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 Toronto-Dominion Bank ( TD), which entered into a 50/50 loss sharing agreement with the FDIC.