Georgia banking regulators have shut down an Alpharetta bank. Nearly half of the bank's asset were bad.
The Georgia Department of Banking and Finance has closed down Alpha Bank and Trust, a news release today said.
An order from the Superior Court of Fulton County named the Federal Deposit Insurance Corporation as receiver.
Stearns Bank, N.A., of St. Cloud, Minn., has acquired $343 million of Alpha's $346 million in deposits at par value. Around $3 million in deposits were uninsured. The FDIC will make direct payments to brokers for another $17 million in brokered deposits.
Two Alpha branches will reopen Monday as branches of Stearns.
Alpha, founded in 2006, had $354 million in assets of which Stearns will purchase approximately $39 million. Real estate loan holdings were $286 million as of June 30, including $234 million in construction and land development.
The FDIC estimates the failure will cost it $158 million.
Alpha's chief executive officer is Johnny Myers and its chief financial officer is D. Michael Sleeth.
Alpha is the 16th FDIC-insured institution to fail this year.