Omni National Bank was seized by the FDIC today, becoming the tenth Georgia bank failure in the last few months. Click here for NASDAQ announcement.
Update – The FDIC has issued its release (click here). SunTrust will receive the insured deposits.
Omni National Bank, Atlanta, Georgia, was closed today by the Office of the Comptroller of the Currency, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into an agreement with SunTrust Bank, Atlanta, Georgia, to act as paying agent for the insured deposits of Omni National Bank.
As the FDIC’s paying agent, SunTrust will operate the six former branches of Omni National, on behalf of the receiver, until April 27, 2009. Omni National had branches in Atlanta, Georgia; Dalton, Georgia; Tampa, Florida; Chicago, Illinois, Dallas, Texas; and Houston, Texas. Banking activities, such as writing checks, can continue normally for former Omni National customers during this transition period
From the Atlanta Business Chronicle –
The Federal Deposit Insurance Corp. has taken over as receiver for Atlanta-based Omni National Bank, which was battered by rising losses stemming from souring real estate loans.
The Office of the Comptroller of the Currency (OCC) on Friday made the announcement, saying the $980 million-asset bank had “experienced substantial dissipation of assets and earnings” because of “unsafe and unsound” practices. OCC also said the bank “incurred losses that have depleted most of its capital, and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance.”