Florida Bank Failures Up to 16; Total U.S. Closures Hit 96: FDIC

Five more U.S. banks have failed, bringing this year’s total to 96 – and Florida’s tally of closures jumped to 16, the hardest hit state, according to the Federal Deposit Insurance Corp.

The FDIC’s latest bank-closure report is also notable for the acquisition of three of the five failed banks by a private-equity group, North American Financial Holdings Inc., based in Charlotte, North Carolina.

The investor group’s Miami subsidiary, NAFH National Bank, agreed to assume all the deposits and assets of: Metro Bank of Dade County, Miami, Florida; Turnberry Bank, Aventura, Florida; and First National Bank of the South, Spartanburg, South Carolina.

North American is only the second group of private investors to acquire failed banks through the FDIC’s process this year. Premier American Bank, backed by Bond Street Holdings, was the other one.

Combined, the three failed institutions operate 23 branches, which will reopen as branches of NAFH National Bank using their current names. The three failed banks cost the FDIC’s insurance fund $176.9 million.

The other two failed banks announced by the FDIC this past week are Mainstreet Savings Bank, FSB, Hastings, Michigan; and Olde Cypress Community Bank, Clewiston, Florida. The two banks cost the FDIC’s insurance fund another $42.9 million.

Florida, still reeling from a growing backlog of foreclosures, is leading all other states in bank failures this year with 16, as faltering residential and commercial real estate loans continue to take their toll on community banks.

Here’s a recap of the FDIC’s most recent bank closures:

• Mainstreet Savings Bank, FSB, Hastings, MI with $97.4 million in total assets and $63.7 million in total deposits was closed. Commercial Bank, Alma, MI has agreed to assume all deposits.
• Olde Cypress Community Bank, Clewiston, FL with $168.7 million in total assets and $162.4 million in total deposits was closed. CenterState Bank of Florida, National Association, Winter Haven, Florida has agreed to assume all deposits, excluding certain brokered deposits.
• Turnberry Bank, Aventura, FL with $263.9 million in total assets and $196.9 million in total deposits was closed. NAFH National Bank, Miami, FL has agreed to assume all deposits).
• Metro Bank of Dade County, Miami, FL with $442.3 million in total assets and $391.3 million in total deposits was closed. NAFH National Bank, Miami, FL has agreed to assume all deposits.
• First National Bank of the South, Spartanburg, SC with $682.0 million in total assets and $610.1 million in total deposits was closed. NAFH National Bank, Miami, FL has agreed to assume all deposits, excluding certain brokered deposits.