Pennsylvania state regulators on Friday closed the $103.3 million-asset First CornerStone Bank in King of Prussia, the third institution to fail this year.
The failed bank's operations, which include six branches around Philadelphia, were sold to First-Citizens Bank & Trust, a unit of First Citizens BancShares in Raleigh, N.C. The acquirer agreed to assume all of First CornerStone's $101 million in deposits, and will buy essentially all of the failed bank's assets. The bank will reopen during normal business hours as First-Citizens.
This is the second failed bank that First Citizens has bought this year after acquiring North Milwaukee State Bank in March. The $31.4 billion-asset First Citizens has added to an unusual footprint by buying nine failed banks in states such as California, Colorado and Washington since 2009.
"This latest agreement speaks to the strength of our company, which allows us to grow by completing select mergers and acquisitions such as this one," Frank Holding Jr., First Citizens' chairman and chief executive, said in a press release.
First Cornerstone's failure is estimated to cost the Federal Deposit Insurance Corp. $10.8 million. First CornerStone is the first Pennsylvania institution to fail since Vantage Point Bank in Horsham was closed in February 2014.