Regulators took over four banks in the past week, including the $1.2 billion-sized Tennessee Commerce Bank of Franklin, TN, one other Tennessee bank and one each in Florida and Minnesota.
Republic Bank & Trust Co. (RB&T) in Louisville, KY, acquired Tennessee Commerce Bank from the Federal Deposit Insurance Corporation ("FDIC").
In addition to assuming approximately $1 billion of the deposits of TCB (both insured and uninsured), RB&T purchased approximately $122 million of loans and other real estate owned for $65 million, representing a 47% discount.
As of Sept. 30, 2011, Tennessee Commerce Bank listed $392 million in
commercial real estate related loans and $15 million in REO properties. What RB&T didn't buy, the FDIC will retain most of the assets for later disposition.
The FDIC estimates that the cost to its Deposit Insurance Fund (DIF) will be $416.8 million.
"We are delighted to expand our service into the Nashville market and we look forward to growing in the community," said Steve Trager, CEO of Republic.
Also in Tennessee, U.S. Bank acquired the banking operations of BankEast in Knoxville from the FDIC.
The acquisition of the banking operations of BankEast is structured as a whole bank purchase and assumption transaction without a loss share agreement. U.S. Bank conducted extensive credit due diligence, and purchased BankEast for an asset discount of approximately $67.5 million.
U.S. Bank will receive approximately $272 million of assets and assume $268 million of insured and uninsured deposits of BankEast.
As of Sept. 30, 2011, 65% of BankEast's loan portfolio was CRE related and the bank listed more than $40 million in delinquent CRE loans and assets.
The FDIC estimates that the cost to its DIF will be $75.6 million.
"This acquisition extends U.S. Bank's banking franchise in the attractive Tennessee market," said John Elmore, executive vice president of community banking at U.S. Bank.
Elmore noted that BankEast's 10 branches in the Knoxville area will bring U.S. Bank's total branch count in Tennessee to 91, and that U.S. Bank intends to continue to expand organically in the state.
In Florida, regulators closed First Guaranty Bank and Trust Co. of Jacksonville and appointed the FDIC as receiver.
The FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida in Winter Haven, FL, to acquire the eight-branch bank.
As of Sept. 30, 2011, First Guaranty Bank and Trust had approximately $377.9 million in total assets. About half of those assets were tied to commercial real estate loans and more than two-thirds of it was distressed. Its biggest share of distress was tied to $58 million in multifamily loans in nonaccrual status.
The FDIC and CenterState Bank entered into a loss-share transaction on $292.9 million of First Guaranty Bank and Trust's assets.
The FDIC estimates that the cost to its DIF will be $82 million.
Lastly First Resource Bank in Savage, MN, purchased the assets and assumed all the deposits of Patriot Bank Minnesota from the FDIC. Patriot Bank Minnesota is a community bank with three locations in Forest Lake and Lino Lakes.
"We believe community banks are essential to building healthy communities," said David Grandstrand, CEO, First Resource Bank.
As of Sept. 30, 2011, Patriot Bank Minnesota had $111.3 million in total assets.
The FDIC and First Resource Bank entered into a loss-share transaction on $79.4 million of Patriot Bank Minnesota's assets.
The FDIC estimates that the cost to its DIF will be $32.6 million.
Keep up weekly on national news, trends and property leads with the Watch List Newsletter, a weekly pdf that includes other news and leads not found on the CoStar Group web news pages.
Sign up for the Watch List E-Mail Alert. A new issue is published late each Wednesday