FIs closed: Nexity Bank, Birmingham, Alabama, USA
On Friday, 15 April, 2011, Nexity Bank, Birmingham, Alabama was closed by the State of Alabama Banking Department and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with AloStar Bank of Commerce, Birmingham, Alabama, a newly-chartered bank, to assume all of the deposits of Nexity Bank.
The sole branch of Nexity Bank will reopen on Monday (today) as a branch of AloStar Bank of Commerce.
As of 31 December, 2010, Nexity Bank had approximately USD793.7 million in total assets and USD637.8 million in total deposits.
No premium was paid for the deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD175.4 million. Nexity Bank is the 31st FDIC-insured institution to fail in the USA this year and the first in Alabama.
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