VOL. 6 | NO. 24 | Saturday, June 08, 2013
First Tennessee Buys Mountain National Bank
By Andy Meek
First Tennessee Bank has bought a failed bank from the Federal Deposit Insurance Corp.
First Tennessee acquired Mountain National Bank of Sevierville from the FDIC. That was after the Office of the Comptroller of the Currency closed Mountain National Bank Friday, June 7, and named the FDIC as receiver.
The OCC said it closed the bank "after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices."
Mountain National Bank's 12 branches will reopen this week under the First Tennessee banner. The Sevierville bank's systems will be integrated into First Tennessee's in the coming months.
Customers will be mailed letters early next week informing them about the purchase.
As of March 31, Mountain National Bank had about $437 million in assets and about $373 million in deposits. The FDIC estimates the cost to its deposit insurance fund from the bank closure will be $33.5 million