Two Failures in the Top Ten

After another few weeks of stability in commercial banking, three former institutions showed that weakness still exists in some areas of the country. 
 
In a move that was probably inevitable, third-ranked GulfSouth Private Bank of Destin, Florida, was closed today by state regulators. SmartBank (4626th) of Pigeon Forge, Tennessee has agreed to acquire the approximately $159.1 million in total assets and $151.1 million in total deposits of the former bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $36.1 million. 


Eighth-ranked Excel Bank of Sedalia, Missouri also closed this week. Simmons First National Bank (1783rd) of Pine Bluff, Arkansas stepped in to acquire the approximately $200.6 million in total assets and $187.4 million in total deposits of the former bank.This was Simmons fourth failed bank acquisition. The FDIC estimates that the cost to the DIF will be $40.9 million.


In addition to assuming all of the deposits of the failed bank, Stearns Bank agreed to purchase essentially all of the assets.Florida regulators also shut down 82nd ranked First East Side Savings Bank based in Tamarac. Frequent acquirer of failed banks Stearns Bank National Association (6643rd) of St. Cloud, Minnesota, has agreed to acquire the approximately $67.2 million in total assets and $65.9 million in total deposits of the former bank. The FDIC estimates that the cost to the DIF will be $9.1 million.