Posted on March - 28 - 2010
Regulators close American National Bank in Parma
Regulators have closed American National Bank in Parma.
The bank was closed Friday by the Office of the Comptroller of the Currency. All deposits were received by The National Bank and Trust Co. in Wilmington, Ohio. The Federal Deposit Insurance Corp. acted as the receiver.
The National Bank and Trust Co. did not pay a premium for the deposits and agreed to purchase essentially all of the assets of the Parma bank. As of Dec. 31, 2009, American National Bank had about $70.3 million in total assets and $66.8 million in total deposits.
Last November, president and CEO Richard Wise said he thought the bank would not be able to meet increased capital requirements of 16.5% of the bank’s risk-weighted assets by the end of the year, but that he thought regulators would be flexible.
“There’s a good chance we’ll get a waiver on that because the risk has gone down dramatically,” he said at the time.
Mr. Wise also said in November that American National Bank was “well on our way” to exiting the mortgage servicing aspect of its business.
The bank was ordered Sept. 22, 2009, to keep high capital levels as long as it held residential mortgage servicing rights assets.
Mr. Wise said previously that he expected the bank’s risk-weighted asset levels to be around 12.79% by the end of December.
Mr. Wise returned as president in 2009 after the former president, David Null, died in August. Mr. Wise was president of the bank from 1988 until 2003 and was on the bank’s board until 2007. He had expected a search for a permanent president to begin this June.
The closure was the 31st of the year nationwide and the first in Ohio for 2010. The last bank to close in the state was AmTrust Bank in Cleveland, last Dec. 4.
The closure is estimated to cost $17.1 million to the FDIC’s Deposit Insurance Fund. The National Bank and Trust Co. and the FDIC entered into a loss-share transaction on $49.8 million of American National Bank’s assets.
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