Regulators shut the $980 million-asset Omni National Bank in Atlanta on Friday, making it the 21st bank to fail this year.
The Office of the Comptroller of the Currency said it closed Omni after it suffered significant losses from "unsafe and unsound practices." The bank had depleted "most of its capital," and there was "no reasonable prospect that the bank will become adequately capitalized without federal assistance."
Omni was founded in 2000 and had branches in Dalton, Ga., Chicago, Houston, Tampa and Dallas, as well as loan offices in Birmingham, Ala., and Philadelphia.
The Federal Deposit Insurance Corp. appointed SunTrust Banks Inc. to act as paying agent for Omni's insured deposits.
SunTrust will operate Omni's branches until April 27; during that time insured depositors may continue banking activities and transfer their funds to other banks. After April 27, Georgia and Florida account holders can close their accounts or open new ones at SunTrust. All other depositors will have checks mailed to them after the rest of Omni's branches close on that date.
Omni had about $2 million of uninsured deposits when it was closed, the FDIC said. Its total deposits were $796.8 million as of March 9.
The FDIC will pay the insured portions of the bank's $320.1 million of brokered deposits directly to the brokers.
The failure is expected to cost the Deposit Insurance Fund $290 million.