Several frequent buyers of failed banks struck new deals with regulators on Friday for another batch of collapsed institutions.
In total, the Federal Deposit Insurance Corp. took five banks into receivership, with a total of $2.16 billion in assets. The failures, which brought this year's tally to 39, are expected to cost the Deposit Insurance Fund $643.2 million.
The $3.3 billion-asset Bank of the Ozarks Inc. agreed to buy two Georgia banks: the $308.5 million-asset First Choice Community Bank in Dallas; and The Park Avenue Bank, a $953.3 million-asset bank in Valdosta. With the acquisitions, Bank of the Ozarks has acquired seven failed banks since 2010.
Bank of the Ozarks also assumed First Choice Community's $310 million in deposits and entered into a loss-sharing agreement on $260.7 million of its assets. That failure is expected to cost $92.4 million. The Little Rock, company also agreed to assume Park Avenue's $827.7 million in deposits and entered into a loss-sharing agreement on $514.1 million. That failure is expected to cost $306.1 million.
In Florida, Premier American Bank in Miami, a bank backed by a $400 million from Bond Street Holdings LLC, also picked up a pair of failures. The blind pool-backed Premier American has purchased four failed banks in Florida since January 2010.
Premier American agreed to buy the $352 million-asset First National Bank of Central Florida in Winter Park and agreed to assume the bank's $312.1 million deposits. The buyer entered into a loss-sharing agreement on $270 million of the failed bank's assets. First National's failure is expected to cost the $42.9 million. Premier American also agreed to buy the $70.9 million-asset Cortez Community Bank in Brooksville and agreed to assume its $61.4 million deposits. It also entered into a loss-sharing agreement on $51.3 million of the failed bank's assets. Cortez Community's failure is expected to cost $18.6 million.
The final failure of the evening was Community Central Bank in Mount Clemens, Mich. In September, the already undercapitalized bank's parent company disclosed in filings with the Securities and Exchange Commission that Dave Widlak, its president and chief executive, was missing. A month later, Widlak's body was discovered in a lake. According to reports earlier this month in the Detroit Free Press, the Macomb County Sheriff's Office said Widlak likely killed himself, but his family has challenged that opinion.
The recently rebranded Talmer Bank & Trust in Troy, Mich., agreed to buy the bank's $476.3 million in assets, with $362.4 million of those assets covered by a loss-sharing agreement. Talmer also agreed pay a 0.25% premium to assume the failed bank's $385.4 million in deposits. That failure is expected to cost $183.2 million.
Earlier this week, First Michigan Bank said had changed its name to Talmer Bank, a name pays homage to its founders' grandfathers. With Community Central, the bank, which received a $200 million capital infusion led by W.L. Ross & Co., has acquired three failed banks in Michigan and one in Wisconsin, since early 2010.
