The Office of the Comptroller of the Currency closed the $437.3 million-asset Mountain National Bank in Sevierville, Tenn., on Friday.

First Horizon National (FHN) in Memphis, Tenn., has agreed to acquire it.

As the receiver for the failed bank, the Federal Deposit Insurance Corp. entered into an agreement with the $25 billion-asset First Horizon's First Tennessee Bank unit to buy all of the bank's assets and assume its $373.4 million in deposits.

The FDIC estimates the failure will cost the Deposit Insurance Fund $33.5 million. It is the 16th bank to fail so far this year.

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