The Office of the Comptroller of the Currency closed Alabama Trust Bank in Sylacauga on Friday, making it Alabama's first bank failure in more than a year.
The bank's failure is the 24th so far this year. The last banks to fail in Alabama were Nexity Bank and Superior Bank, which were both based in Birmingham and were closed by regulators in April 2011.
As the receiver of the $51.6 million-asset bank, the Federal Deposit Insurance Corp. sold Alabama Trust's assets to Southern States Bank in Anniston, Ala. Southern States also agreed to assume the failed bank’s $45.1 million in deposits. Alabama Trust had one branch.
The FDIC said the failure is expected to cost the Deposit Insurance Fund $8.9 million.