Alabama Trust Bank, of Sylacauga, Ala. was shuttered by federal regulators on Friday, making it the 24th bank to fail in 2012 so far. It is the first failure in 2012 for Alabama.
The bank was closed by the Office of the Comptroller of the Currency, which named the Federal Deposit Insurance Corporation receiver. The FDIC, in turn, found Southern States Bank, of Anniston, Ala., to purchase the failing bank’s assets and assume its deposits.
Alabama Trust Bank was a small bank with just one branch. It had $51.6 million in assets and $45.1 million in deposits by recent estimates. The total loss to the Deposit Insurance Fund is estimated to be $8.9 million, according to the FDIC.
Customers of Alabama National Trust are now customers of Southern States Bank, and they should continue to use their own branch until the acquiring institution makes necessary systems upgrades, after which point customers may use whichever branch they like.