Regulators Shut Down Six Lenders in Biggest Single-Day Run of the Year

State and federal regulators closed the doors of six community-based lenders on Friday â€" two in Alabama, two in Georgia, and one each in Minnesota and Mississippi.
[IMAGE] This latest round of closings brings the total number of ""FDIC-insured bank failures"":http://www.fdic.gov/bank/individual/failed/banklist.html to 34 for the year, and represents the most shut-downs in a single day since mid-December.

Still, the pace of institutional failures has slowed. By comparison, at this time last year, the annual tally of closings was 50.

Recent analysis by ""Trepp LLC"":http://www.trepp.com shows that it's now souring commercial real estate loans that are taking the biggest toll on community banks' balance sheets, as opposed to troubled residential mortgages that plagued so many at the start of the financial crisis.

""Superior Bank"":http://www.superiorbank.com/index.html in Birmingham, Alabama, was the largest closing of the weekend and the first multi-billion dollar bank to be shut down this year. Superior Bank operated 73 branch offices throughout Alabama and Florida. Its deposits totaled $2.7 billion and it had $3.0 billion in assets.

""Community Bancorp LLC"":http://www.cbcbancorp.com/ out of Houston, Texas, established a newly-chartered bank subsidiary by the same name, Superior Bank, N.A., to absorb the failed institution’s operations, including all of its deposits and assets. The FDIC will share in the losses on $1.84 billion of the acquired assets. The closing is expected to cost the federal agency $259.6 million.

Birmingham’s ""Nexity Bank"":http://www.nexitybank.com/ also found regulators at its doors Friday evening. Nexity had one local branch location, $637.8 million in deposits, and $793.7 million in assets.

[COLUMN_BREAK]

AloStar Bank of Commerce, also in Birmingham and also a newly chartered bank, agreed to acquire Nexity Bank’s deposits and purchase its assets. The FDIC and AloStar entered into a loss-share arrangement on $384.2 million of the assets. Nexity’s failure will cost the FDIC an estimated $175.4 million.

In Cartersville, Georgia, ""Bartow County Bank"":http://www.bartowcountybank.com/ was shuttered over the weekend. The local lender operated four branch offices, with $304.1 million in deposits and assets totaling $330.2 million.

The FDIC reached an agreement with ""Hamilton State Bank"":http://www.hamiltonstatebank.com in Hoschton, Georgia, to take over the failed institution. The federal agency agreed to share losses on $247.5 million of the assets acquired from Bartow County Bank. The closing is expected to cost the FDIC $69.5 million.

Also in Georgia, ""New Horizons Bank"":http://www.newhorizonsbank.com/ in East Ellijay has been shut down. New Horizons had just a single local branch, $106.1 million in total deposits, and $110.7 million in assets.

""Citizens South Bank"":http://www.citizenssouth.com/, headquartered in Gastonia, North Carolina, stepped in to acquire the failed lender. The FDIC and Citizens South Bank entered into a loss-share transaction on $84.7 million of New Horizon's assets. The Georgia bank’s closing will cost the FDIC an estimated $30.9 million.

""Rosemount National Bank"":http://www.rosemountbank.com/ASP/home.asp in Minnesota was closed by its federal regulator. It had one branch, $36.6 million in total deposits, and $37.6 million in assets.

The FDIC brokered a deal with ""Central Bank"":http://www.centralbnk.com in Stillwater, Minnesota, to acquire the failed bank. No loss-share agreement was included in the transaction. Rosemount’s closing will cost the FDIC $3.6 million.

""Heritage Banking Group"":http://www.heritagebankinggroup.com/ based in Carthage, Mississippi, was also shuttered. It ran eight branch locations, with deposits totaling $196.2 million and assets of $224.0 million.

""Trustmark National Bank"":http://www.trustmark.com out of Jackson, Mississippi, is the acquiring institution. The FDIC and Trustmark will share losses on $156.4 million of Heritage’s assets. The Mississippi bank’s closing will cost the FDIC an estimated $49.1 million.