Integrity Bank of Alpharetta fails; Regions Bank of Birmingham assumes deposits

Published 5:35 pm Friday, August 29, 2008

Integrity Bank of Alpharetta, Ga., on Friday became the 10th U.S. bank to fail so far this year.

Regions Bank of Birmingham, Ala., is assuming all of Integrity Bank’s $974 million in insured and uninsured deposits, and about $34.4 million of the bank’s $1.1 billion in assets.

“We felt it was important to assume both insured and uninsured deposits, and we believe it is our responsibility as a leading national institution to work with and support the FDIC in providing safe harbors for depositors in this challenging time,” said Regions Chairman and Chief Executive Dowd Ritter in a statement.

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The FDIC said Integrity’s five branches in Atlanta will open Tuesday after Labor Day as Regions Bank branches. Regions is the 18th largest U.S. bank, according to American Banker, with about $144 billion in total assets.

Integrity Bank is the first Georgia bank to fail since late September of last year, when NetBank — also based in Alpharetta — was closed by the Federal Deposit Insurance Corp., the FDIC said Friday.

The number of bank failures has shot up this year amid continuing mortgage defaults.

The remainder of Integrity’s total assets are being retained by the FDIC. The FDIC said it estimates that Integrity’s failure will cost its deposit insurance fund $250 million to $350 million.