Banking regulators are seizing New Orleans-based First NBC Bank in the costliest bank failure since the financial crisis.
Louisiana regulators seized the bank Friday and handed it to the Federal Deposit Insurance Corp., which expects to spend $1 billion to mop up the mess.
First NBC is the fourth federally insured bank to fail this year.
The FDIC is selling $1.6 billion in deposits and $1 billion in assets to Hancock Holding Co. of Gulfport, Mississippi. It will fold First NBC's 29 branches into its Whitney Bank and Hancock Bank units.
The FDIC will send $1.4 billion in checks to other depositors, and separately sell $2 billion-plus in First NBC assets. No depositors will lose money.
FDIC spokesman David Barr says only Hancock bid for First NBC, paying $35 million for deposits.