6 Banks Closed on April 15

$3 Billion Superior Bank, Birmingham, Ala., Among Failures
6 Banks Closed on April 15
Superior Bank, a $3 billion institution based in Birmingham, Ala., was closed on Friday, April 15. It was the largest of six banks to fail this week. Additionally, two credit unions were placed into conservatorship.

These latest failures raise to 42 the number of failed institutions so far in 2011.

The latest failures are:

Superior Bank, Birmingham, Alabama

Superior Bank, Birmingham, Alabama, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Superior Bank, N.A., Birmingham, Alabama, a newly-chartered bank subsidiary of Community Bancorp LLC, Houston, Texas, to assume all of the deposits of Superior Bank.

The 73 branches of Superior Bank were to reopen during their normal business hours beginning Saturday as branches of Superior Bank, N.A. Depositors of Superior Bank will automatically become depositors of Superior Bank, N.A.

As of December 31, 2010, Superior Bank had approximately $3.0 billion in total assets and $2.7 billion in total deposits. In addition to assuming all of the deposits of the failed bank, Superior Bank, N.A. agreed to purchase essentially all of the assets.

The FDIC and Superior Bank, N.A. entered into a loss-share transaction on $1.84 billion of Superior Bank's assets. Superior Bank, N.A. will share in the losses on the asset pools covered under the loss-share agreement.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $259.6 million.

Heritage Banking Group, Carthage, Mississippi

Heritage Banking Group, Carthage, Mississippi, was closed by the Mississippi Department of Banking and Consumer Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Trustmark National Bank, Jackson, Mississippi, to assume all of the deposits of Heritage Banking Group.

The eight branches of Heritage Banking Group will reopen on Monday as branches of Trustmark National Bank. Depositors of Heritage Banking Group will automatically become depositors of Trustmark National Bank.

As of December 31, 2010, Heritage Banking Group had approximately $224.0 million in total assets and $196.2 million in total deposits.

The FDIC estimates that the cost to the DIF will be $49.1 million.

Bartow County Bank, Cartersville, Georgia

Bartow County Bank, Cartersville, Georgia, was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Hamilton State Bank, Hoschton, Georgia, to assume all of the deposits of Bartow County Bank.

The four branches of Bartow County Bank were to reopen during their normal business hours beginning Saturday as branches of Hamilton State Bank.

As of December 31, 2010, Bartow County Bank had approximately $330.2 million in total assets and $304.1 million in total deposits.

The FDIC estimates that the cost to the DIF will be $69.5 million.

New Horizons Bank, East Ellijay, Georgia

New Horizons Bank, East Ellijay, Georgia, was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens South Bank, Gastonia, North Carolina, to assume all of the deposits of New Horizons Bank.

The sole branch of New Horizons Bank will reopen on Monday as a branch of Citizens South Bank. Depositors of New Horizons Bank will automatically become depositors of Citizens South Bank.

As of December 31, 2010, New Horizons Bank had approximately $110.7 million in total assets and $106.1 million in total deposits.

The FDIC estimates that the cost to the DIF will be $30.9 million.

Nexity Bank, Birmingham, Alabama

Nexity Bank, Birmingham, Alabama, was closed by the State of Alabama Banking Department, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with AloStar Bank of Commerce, Birmingham, Alabama, a newly-chartered bank, to assume all of the deposits of Nexity Bank.

The sole branch of Nexity Bank will reopen on Monday as a branch of AloStar Bank of Commerce. Depositors of Nexity Bank will automatically become depositors of AloStar Bank of Commerce.

As of December 31, 2010, Nexity Bank had approximately $793.7 million in total assets and $637.8 million in total deposits.

The FDIC estimates that the cost to the DIF will be $175.4 million.

Rosemount National Bank, Rosemount, Minnesota

Rosemount National Bank, Rosemount, Minnesota, was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Rosemount National Bank.

The sole branch of Rosemount National Bank was to reopen on Saturday as a branch of Central Bank. Depositors of Rosemount National Bank will automatically become depositors of Central Bank.

As of December 31, 2010, Rosemount National Bank had approximately $37.6 million in total assets and $36.6 million in total deposits.

The FDIC estimates that the cost to the DIF will be $3.6 million.

Texans Credit Union of Richardson, Texas

The National Credit Union Administration (NCUA) placed Texans Credit Union of Richardson, Texas, into conservatorship. Texans Credit Union remains open and operating. While continuing normal member services, NCUA will work to resolve issues affecting the Texans Credit Union's safety and soundness.

A full service credit union, Texans Credit Union currently has 133,000 members and assets of $1.6 billion. The credit union provides financial services to people residing in the Texas counties of Collin, Dallas, Rockwall, Travis, and Williamson, as well as parts of Denton County.

The decision to conserve a credit union enables the institution to continue regular operations with expert management in place correcting previous service and operational weaknesses. During conservatorship, members may therefore continue to conduct business at the credit union.

Vensure Federal Credit Union of Mesa, Arizona

The NCUA placed Vensure Federal Credit Union of Mesa, Arizona, into conservatorship.

Administered by NCUA, the National Credit Union Share Insurance Fund (NCUSIF) continues to insure individual accounts at Vensure Federal Credit Union up to $250,000. The NCUSIF, like the FDIC's Deposit Insurance Fund, has the backing of the full faith and credit of the U.S. Government.

Vensure Federal Credit Union has $4.7 million in assets and 144 members, as reported in its Call Report of March 31, 2011. The credit union primarily provides financial services to employees of Vensure Employer Services in Mesa, Arizona, and the company's subsidiaries.


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