Feds Close Omni Bank

A Georgia bank with a branch in Tampa was taken over by regulators Friday, marking the 21st failure this year of a federally insured bank.

The Federal Deposit Insurance Corp. was appointed receiver of Atlanta-based Omni National Bank, which has a loan production office and branch at 302 N. Dale Mabry Highway. It had $980 million in assets as of Dec. 31.

Atlanta-based SunTrust Bank will act as paying agent for the insured deposits of Omni National Bank, the FDIC said in a statement.

Customers have until April 27 to either open an account with SunTrust or receive their money.

Andrew Gray, FDIC spokesman, said the process should be "seamless" for customers.

The Office of the Comptroller of the Currency said that losses depleted the bank of most of its capital and it would have been unable to recapitalize itself without government assistance.

The FDIC will release further information about its plans for the bank, the comptroller's office said.

The Tampa branch was operating as usual Friday afternoon. A woman who identified herself as the branch manager said she wasn't aware of the FDIC's action and was busy helping customers.

Last week, regulators shut down three banks, including another Georgia-based bank, FirstCity Bank in Stockbridge. The others were Teambank NA in Paola, Kan., and Colorado National Bank in Colorado Springs, Colo.

Mounting loan losses, rising unemployment and tumbling home prices have pressured banks during the recession, leading to a growing number of failures. Those failures have cost the FDIC's insurance fund billions of dollars. The fund stands at its lowest level in nearly a quarter-century, $18.9 billion as of Dec. 31, compared with $52.4 billion at the end of 2007.

The FDIC expects that bank failures will cost the insurance fund around $65 billion through 2013. The FDIC has increased fees and premiums in an effort to replenish the insurance fund.

The 21 bank collapses this year is already approaching the total of all of 2008, when 25 banks were shut down by regulators. Last year's closures included two of the nation's largest savings and loans, Washington Mutual and IndyMac Bancorp.