6 banks shuttered; makes 34 closed in '11

WASHINGTON — Regulators on Friday shut down a total of six banks in Alabama, Georgia, Minnesota and Mississippi, boosting the number of U.S. bank failures this year to 34. There were 157 bank closures in 2010 amid the shattered economy and piles of bad loans.

The Federal Deposit Insurance Corp. seized the banks, the largest by far being Superior Bank, based in Birmingham, Ala., with $3 billion in assets and about 70 branches in Alabama and Florida.

A newly chartered bank subsidiary of Houston-based Community Bancorp LLC was set up to take over Superior Bank's assets and deposits. The new subsidiary is called Superior Bank NA.

In addition, the FDIC and Superior Bank NA agreed to share losses on $1.84 billion of the failed bank's loans and other assets.

Superior Bank received $69 million in taxpayer funds in December 2008 under the government's financial bailout program, Treasury Department data show.

Its failure is expected to cost the deposit insurance fund $259.6 million.

Also shuttered were Birmingham-based Nexity Bank, with $793.7 million in assets; Bartow County Bank of Cartersville, Ga., with $330.2 million in assets; New Horizons Bank in East Ellijay, Ga., with $110.7 million in assets; Rosemount National Bank in Rosemount, Minn., with $37.6 million in assets; and Heritage Banking Group, based in Carthage, Miss., with $224 million in assets.

AloStar Bank of Commerce, also based in Birmingham, agreed to assume the assets and deposits of Nexity Bank. Hamilton State Bank, based in Hoschton, Ga., is assuming the assets and deposits of Bartow County Bank. Citizens South Bank, based in Gastonia, N.C., is acquiring the assets and deposits of New Horizons Bank. Central Bank, based in Stillwater, Minn., is assuming those of Rosemount National Bank. Trustmark National Bank, based in Jackson, Miss., is taking those of Heritage Banking Group.

In addition, the FDIC and AloStar Bank of Commerce agreed to share losses on $384.2 million of Nexity Bank's loans and other assets. The agency and Hamilton State Bank are sharing losses on $247.5 million of Bartow County Bank's loans and other assets. The agency and Citizens South Bank are sharing losses on $84.7 million of New Hori

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