July 16, 2010
OCC Approves Use of Second Shelf Charter to Acquire Three Failed Banks
WASHINGTON — The Office of the Comptroller of the Currency announced today it has approved the second use of a shelf charter for the acquisition of a failed bank, allowing NAFH National Bank, Miami, Florida, to acquire two banks in Florida and one in South Carolina. All three banks were placed in receivership today.
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. By granting the preliminary approval, the OCC expands the pool of potential buyers available to buy troubled institutions, and in particular the new equity capital available to bid on troubled institutions through the Federal Deposit Insurance Corporation’s bid process.
NAFH National Bank was granted preliminary approval as a shelf charter on March 25, 2010. Today, the OCC granted final approval for the bank to acquire MetroBank of Dade County, Miami, Florida; Turnberry Bank, Aventura, Florida; and First National Bank of the South, Spartanburg, South Carolina. The final approval is subject to various conditions to ensure the safe and sound operation of the new bank.