Eighth-Ranked BankMeridian and Two Other Top 40 Banks Fail

Eighth ranked, BankMeridian, N.A. of Columbia, South Carolina succumbed to regulators this week as it was closed today by the Office of the Comptroller of the Currency. SCBT, National Association (1144th) of Orangeburg, South Carolina agreed to take over the approximately $239.8 million in total assets and $215.5 million in total deposits of BankMeridian, N.A. This was SCBT's third acquisition of a failed bank. SCBT also entered into a loss-share transaction on $179.0 million of the assets and the total estimated cost to the Deposit Insurance Fund (DIF) is expected to be $65.4 million.

The largest bank to fail this week was 19th ranked Integra Bank, National Association of Evansville, Indiana. The roughly $2.2 billion bank by assets was acquired by Old National Bank (2068th) also of Evansville, Indiana. With this acquisition Old National Bank raises their total asset base to nearly $10 billion. This could result in the bank facing greater regulatory scrutiny in the future as some provisions of Dodd-Frank focus on larger banks. The deal includes a loss-share transaction on $1.2 billion of Integra Bank, National Association's assets and is expected to cost the DIF $170.7 million.

Thirtieth ranked, Virginia Business Bank of Richmond, Virginia also closed today. Xenith Bank (6136th) of Richmond, Virginia has agreed purchase nearly all of the $95.8 million in total assets and $85.0 million in total deposits of Virginia Business Bank. The FDIC estimates that the cost will be $17.3 million.