| By John
Letzing, MarketWatch |
| Last Update:
4:46 PM ET Oct 24,
2008 |
|
| Alpha Bank closed, 16th failure this
year |
SAN FRANCISCO (MarketWatch) -- Regulators said late Friday they've closed
Alpharetta, Ga.-based Alpha Bank & Trust -- the 16th U.S. bank this year to
succumb to the ongoing credit crisis.
The Federal Deposit Insurance Corp. said in a statement that as of the end of
September, Alpha Bank had total assets of $354.1 million, and total deposits of
$346.2 million. The FDIC said there are roughly $3.1 million in uninsured Alpha
Bank deposits in 59 accounts that potentially exceed its deposit insurance
limits.
The FDIC recently raised its insurance limit per regular account to $250,000
from $100,000.
The FDIC said it's reached an agreement with St. Cloud, Minn.-based Stearns
Bank, National Association to assume Alpha Bank's insured deposits.
In addition, Stearns Bank will purchase roughly $38.9 million of Alpha Bank's
assets, while the FDIC will retain the remaining assets "for later disposition,"
the FDIC said.
Alpha Bank's two branches will open Monday as Stearns Bank, and Alpha Bank
customers will be able to access their accounts over the weekend using ATM or
debit cards or by writing checks, the FDIC said.