Two small-bank failures late Friday brought the year’s total to 55.
State regulators closed $275 million-asset BankFirst in Sioux Falls, S.D., and $115 million-asset First Piedmont Bank in Winder, Ga.
The Federal Deposit Insurance Corp., appointed as the receiver for both institutions, completed transactions that transferred all of their deposits and most of the assets into other banks.
Alerus Financial in Grand Forks, N.D., agreed to assume all $254 million of BankFirst’s deposits. The acquirer also took over roughly $72 million of the failed bank’s assets. In a separate transaction, Bank Beal Nevada in Las Vegas agreed to buy $177 million of BankFirst’s loans.
Alerus will operate BankFirst’s Sioux Falls location as a branch of First Dakota National Bank. Its Minneapolis branch will be operated under the Alerus name. Both branches will reopen on Monday.
The failure is estimated to cost the government $91 million, the FDIC said.
In the First Piedmont failure, the 10th this year in Georgia, First American Bank and Trust Co. in Athens paid a 1.01% premium for the closed institution’s 109 million of deposits. The acquirer also agreed to buy roughly $111 million of the failed bank’s assets, and entered into a loss-sharing agreement with the FDIC for $90 million of those assets.
First Piedmont’s failure is estimated to cost the FDIC $29 million.