Regulators Shutter Three Banks; 46 Failures in 2012

Three banks failed Friday – including two in Florida – and will cost the Federal Deposit Insurance Corp. an estimated $86 million.

Regulators seized the $200 million-asset Excel Bank in Sedalia, Mo.; the $159 million-asset GulfSouth Private Bank in Destin, Fla.; and the $67 million-asset First East Side Savings Bank in Tamarac, Fla.

It was the first time in three months that multiple banks failed on the same day. Regulators closed five institutions on July 20.

Forty-six banks have failed this year. The FDIC was able to find buyers to protect the deposits in all three closures Friday.

Excel’s operations were sold to Simmons First National Bank in Pine Bluff, Ark. Simmons First agreed to assume all of the failed bank’s $187 million in deposits and acquire roughly all of its assets. The FDIC will share in losses on $127 million of those assets. The failure was estimated to cost the Deposit Insurance Fund about $41 million.

SmartBank in Pigeon Forge, Tenn., agreed to assume all of GulfSouth Private’s $151 million in deposits and acquire roughly all of its assets. The failure was estimated to cost the insurance fund $36 million.

Stearns Bank in St. Cloud, Minn., will assume all of First East Side’s $66 million deposits and purchase essentially all of its assets. The failure was estimated to cost $9 million.