Regulators close small bank in Tennessee

AP News
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Posted: Jun 07, 2013 6:32 PM

WASHINGTON (AP) — Regulators are closing a small bank in Tennessee, bringing the number of U.S. bank failures to 16 this year.

The Federal Deposit Insurance Corp. said Friday that it seized Mountain National Bank, based in Sevierville, Tenn.

The lender, which operated 12 branches, had about $437.3 million in assets and $373.4 million in deposits as of March 31.

First Tennessee Bank, NA, based in Memphis, Tenn., agreed to assume all of the failed bank's deposits and to buy essentially all its assets.

The failure of Mountain National Bank is expected to cost the deposit insurance fund $33.5 million.