Alpha Bank closed, 16th failure this year

Alpha Bank closed, 16th failure this year
By John Letzing, MarketWatch
Last update: 4:46 p.m. EDT Oct. 24, 2008

SAN FRANCISCO (MarketWatch) -- Regulators said late Friday they've closed Alpharetta, Ga.-based Alpha Bank & Trust -- the 16th U.S. bank this year to succumb to the ongoing credit crisis.

The Federal Deposit Insurance Corp. said in a statement that as of the end of September, Alpha Bank had total assets of $354.1 million, and total deposits of $346.2 million. The FDIC said there are roughly $3.1 million in uninsured Alpha Bank deposits in 59 accounts that potentially exceed its deposit insurance limits.

The FDIC recently raised its insurance limit per regular account to $250,000 from $100,000.
The FDIC said it's reached an agreement with St. Cloud, Minn.-based Stearns Bank, National Association to assume Alpha Bank's insured deposits.

In addition, Stearns Bank will purchase roughly $38.9 million of Alpha Bank's assets, while the FDIC will retain the remaining assets "for later disposition," the FDIC said.

Alpha Bank's two branches will open Monday as Stearns Bank, and Alpha Bank customers will be able to access their accounts over the weekend using ATM or debit cards or by writing checks, the FDIC said.