Mainstreet Bank, And Five Others, Fail On Friday As Total Closes In On 100 For The Year

This past Friday saw the most bank failures – six – since April 30, when seven banks failed. Among those that were closed by the government was the sweetly named “Mainstreet Savings Bank, FSB,” of Hastings, Michigan. Mainstreet Savings was the 96th bank to fail this year. Commercial Bank of Alma, Michigan, assumed its deposits. 

Also of note: For the second time, a “shelf charter” was used for the acquisition of failed banks, allowing NAFH National Bank of Miami, Florida, to acquire MetroBank of Dade County, Miami, Florida; Turnberry Bank, Aventura, Florida; and First National Bank of the South, Spartanburg, South Carolina. The OCC shelf charter process involves the granting of preliminary approval to investors for a national bank charter. The charter remains inactive, or “on the shelf,” until such time as the investor group is in a position to acquire a troubled institution. NAFH National Bank had been granted preliminary approval as a shelf charter on March 25, 2010, and it received final approval from the OCC on Friday.