Private equity group buys three US banks

Charlotte, North Carolina: North American Financial Holdings Inc., run by former Bank of America Corp. investment-banking head Gene Taylor, bought three lenders as US failures this year rose to 96.

North American, based in Charlotte, North Carolina, purchased two failed banks in Florida and one in South Carolina, according to statements posted Friday on the Federal Deposit Insurance Corp.'s website. Three other banks were seized, including one in Michigan, costing the FDIC's deposit-insurance fund a total of $334.8 million (Dh1,229 million).

North American is one of two groups backed by private investors that have purchased failed banks through the FDIC's resolution process this year. Through June, the FDIC had awarded only three of 86 failed banks to private investors. All three were purchased by Premier American Bank, backed by Bond Street Holdings LLC.

Possible closures

Regulators may close the most banks this year since 1992 as souring residential and commercial mortgages impair capital levels. The FDIC included 775 banks with $431 billion in assets on the confidential list of problem lenders as of March 31, an increase from 702 banks with $402.8 billion at the end of the fourth quarter. FDIC Chairman Sheila Bair has said 2010 failures will surpass last year's total of 140.

North American purchased the banks through its newly chartered lender, NAFH National Bank. The bank purchased Miami's Metro Bank of Dade County, Turnberry Bank of Aventura, Florida, and Spartanburg, South Carolina-based First National Bank of the South. NAFH added 23 branches and $1.2 billion in deposits.

Acquiring Banks

North American is seeking to deploy $900 million of capital raised for bank purchases. Last month, it agreed to pay $175 million to acquire Florida-based TIB Financial Corp.

Taylor worked at Bank of America for 38 years, including stints heading its Florida business and most recently as head of commercial and investment banking, reporting to then-CEO Kenneth Lewis.

Other longtime Bank of America executives are backing the effort, including former CEO Hugh McColl Jr. and finance chief Marc Oken through their Charlotte-based firm Falfurrias Capital Partners.