Pisgah Community Bank Finally Fails

After being the first or second worst most risky bank a total of ten times, Pisgah Community Bank of Asheville, North Carolina finally succumbed to regulators and was close today. Despite the multitude of efforts by owner Capital Bancorp Limited to cross-subsidize and otherwise restructure the bank, it has never been able to steady the sinking ship.  As of March 31, 2013, Pisgah Community Bank had approximately $21.9 million in total assets and $21.2 million in total deposits remaining. Of these, Capital Bank, N.A. (2226th) of Rockville, Maryland, has agreed to assume all of the deposits along with purchasing approximately $19.8 million of the failed bank's assets. The FDIC estimates that cost to the Deposit Insurance Fund (DIF) will be $8.9 million. 


Another "Top Ten" failure this week was Sunrise Bank of Valdosta, Georgia. the fourth-ranked bank on our list was closed today by state regulators. The failed bank had approximately $57.8 million in total deposits which were assumed by Synovus Bank (2742nd) of Columbus, Georgia. Synovus Bank also acquired about $13.2 million of the failed bank's assets while the remainder of the approximately $60.8 million in total assets stayed with the FDIC. The FDIC estimates that cost to the DIF will be $17.3 million.