Interest Rate Roundup

Friday, October 24, 2008

Bank Failure Friday gets started early

Usually these announcements don't hit until later in the evening. Guess things really are getting busier at the FDIC! Anyway, Alpha Bank and Trust of Alpharetta, Georgia just failed, with Stearns Bank N.A. of St. Cloud, Minnesota assuming Alpha's insured deposits. Alpha only has two branches, but it did have total assets of $354.1 million and total deposits of $346.2 million -- not huge, but not peanuts either.

There were just over $3 million in uninsured deposits at Alpha, according to the FDIC, which is maintaining a large chunk of Alpha's assets in this transaction (Stearns is only buying $38.9 million of the $354 million total). The FDIC estimates total resolution costs will come to $151.8 million. Alpha is the 16th failed institution this year.


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