First Citizens Bank has expanded into Pennsylvania with its latest acquisition of a failed bank.
The Raleigh-based bank announced Friday evening that it had reached an agreement with the Federal Deposit Insurance Corp. to purchase First CornerStone Bank, a six-branch community bank based in King of Prussia, Pa. The deal came after the bank was closed by Pennsylvania state regulators, which then appointed the FDIC as receiver.
First CornerStone had $103.3 million in assets, including $50.4 million in loans, and $101 million in total deposits. First Citizens acquired all of the bank’s deposits and essentially all of its assets.
“This latest agreement speaks to the strength of our company, which allows us to grow by completing select mergers and acquisitions such as this one,” CEO Frank Holding Jr. said in a statement.
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First Citizens, which has more than 550 branches in 20 states, has acquired nine failed banks through the FDIC since July 2009, including a two-branch bank in Milwaukee earlier this year.
The FDIC estimates that the sale to First Citizens was the least costly resolution of the situation for the agency’s Deposit Insurance Fund, which will lose an estimated $10.8 million.
First CornerStone is the third FDIC-insured institution to fail this year.