Banks Update, Part II

One of the banks we mentioned in a recent post ("The Strongest and Weakest Banks in America"), Alpharetta, Georgia-based Integrity Bank (Pink Sheets: ITYC.PK), failed yesterday. From the Atlanta Constitution-Journal's website ("Alpharetta-based Integrity bank fails"),

Birmingham-based Regions Financial will acquire Integrity’s $974 million in deposits, the FDIC said. Integrity customers will have access to their accounts and no interruption of service is expected, the FDIC said. Integrity’s five branch offices will reopen Tuesday as Regions offices and customers can continue to use those locations, the FDIC said.

However, the matter may not be over. The FBI, which investigates possible financial crimes, is looking into the situation, said agency spokesman Stephen Emmett. The “FBI is working with the FDIC” on the case, but it “is not prepared to discuss Integrity Bank at this time,” he said.

The Alpharetta-based bank, which opened its doors in 2000 with a Christian-centered philosophy, is the 10th U.S. bank to fail this year and the second Georgia institution to fail in the past 12 months.