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Tennessee Bank Fails

Mortgage News

A bank out of Tennessee has been seized by state regulators and closed down. Meanwhile, it was recently revealed that United Wholesale Mortgage’s retail unit previously closed down.

On Friday, the
Tennessee Department of Financial Institutions seized control of Trust Company Bank, according to an announcement. The financial institution is located in Memphis.

“The department took possession of Trust Company Bank due to Trust Company Bank’s severely impaired capital, unsound condition and inability to continue normal operations,” the statement said.

The Federal Deposit Insurance Corp. was named receiver of the failed bank.

Trust Company Bank was established in 1902.
It operates four locations and employs 50 people.

Included in
the bank’s $21 million in total assets as of Dec. 31, 2015, were $6 million in residential loans, $2 million in commercial real estate loans and less than $1 million in construction-and-land-development loans.

Deposits stood at $20 million.

After a secret bidding process was held,
The Bank of Fayette County was awarded the winning bid.

The Bank of Fayette County assumed all of the failed bank’s $20 million in deposits and acquired $4 million of its assets.

The FDIC expects to deplete its Deposit Insurance Fund by more than $7 million as a result of the failure — the second this year.

In all, Mortgage Daily has tracked the failure or closing of
19 mortgage-related business so far this year.

An April 17 news article from Crains Detroit indicated that David Hall has left
United Shore Financial Services LLC to run his own firm, Hall Financial LLC. The story indicated that United Shore, parent to United Wholesale Mortgage, shut down its retail operations in late 2014.

Hall previously launched Hall Financial Corp. in 2010. Shore Financial Services Inc., which was subsequently renamed United Shore Financial Services, acquired Hall Financial in 2011 and hired Hall as president of Shore’s retail mortgage division.

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