Superior Bank

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This article is about the failed Superior Bank. For its successor, see Superior Bank, N. A..

Superior Bank (formerly The Bank) was a community savings and loan headquartered in Birmingham at the John A. Hand Building at 17 20th Street North. Superior Bank was a subsidiary of Superior Bancorp, founded in 1997 as The Banc Corporation. Superior Bank had a total of 73 branches in Alabama and Florida. Superior Bank was the second largest mortgage lender in the Birmingham market, after Regions Bank, in the late 2000s. It also had loan production offices in Montgomery, and in Tallahassee and Panama City, Florida. From July 2008 until its closing by the FDIC in April 2011, Superior was the second-largest bank headquartered in Birmingham.

History

The Bank

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The Banc Corporation was founded in the fall of 1997 by James A. Taylor, who, with a group of twenty-six individual investors, acquired Warrior Savings Bank. Four other financial institutions were subsequently purchased and in March, 1998, the merged entities were renamed The Bank and the company opened its headquarters in Birmingham. The corporation completed its initial public offering of common stock to become a publicly held company in December, 1998. The Bank continued to grow in targeted areas of Alabama and Florida via the opening of new offices as well as the acquisition of community banks. The bank, however, was weighed down by years of disappointing earnings, faltering stock prices and the 2003 discovery of $26 million in improper loans. Taylor and his son, Jimmy Taylor, Jr, who served as president, resigned as CEO in January 2005 [1].

Superior Bank

C. Stanley Bailey was installed as CEO during 2005 and the name was changed to Superior Bank in 2006. Jimmy Taylor resigned as chairman in December 2006, making room for Bailey to step into both roles.

Under Bailey, Superior quickly acquired three banks between 2006 and 2008. In 2009 Superior moved its legal headquarters to Tampa, Florida, where it had acquired First Kensington Bank. It returned headquarters operations to Birmingham in 2010.

In November, 2010, the Office of the Thrift Supervision served Superior with a cease and desist order, which directed the bank to raise capital and change lending practices. In March 2011 Bailey stepped down as Chairman and CEO. C. Marvin Scott succeeded him in those roles and Rick Gardner was named president of the bank.

Superior failed and was closed by the Office of the Thrift and the Federal Deposit Insurance Corporation on April 15, 2011, the largest American bank failure in 2011. The deposits and most of the assets were sold to a newly created bank called Superior Bank, National Association, which was a wholly-owned subsidiary of Community Bancorp LLC of Houston, Texas. CBC eventually was renamed Cadence Bancorp and Superior Bank, N.A. was merged into Cadence Bank.

In 2014 the FDIC filed a suit against Bailey, Scott, Gardner, board members James Kent, Peter Lowe, Robert Parrish, Jr, and Dewey Mitchell, and several Florida-based executives. The suit alleges "gross negligence and breach of fiduciary duty" in its process for approving loans for commercial real estate and construction between 2007 and 2010.

Acquisitions

First Kensington Bank

On March 6, 2006, Superior announced the merger of Tampa, Florida-based First Kensington Bancshares. [2] Its subsidiary First Kensington Bank operated 12 branches in the Tampa area. The merger was approved by the SEC and the banks' boards of directors on August 23, 2006. The merger was completed on August 31. Superior took over operations of First Kensington on February 20, 2007.

Community Bank

On May 1, 2006, Superior announced that it would acquire Blountsville-based Community Bancshares, Inc. with its subsidiaries Community Bank and 1st Community Credit, which together operated 33 branch offices in 14 Alabama counties. The merger was completed on October 31, and Superior began operation of the former Community Bank branches and accounts on December 11. 1st Community Credit continued operating as a separate subsidiary of Superior Bancorp.

People's Community Bank of the West Coast

Superior announced on January 18, 2007 it would be acquiring Sarasota, Florida-based People's Community Bancshares and its subsidiary People's Community Bank of the West Coast in a stock deal worth $77.1 million. People's Community Bank had 3 branches located in Sarasota, Venice and Bradenton, Florida. The merger was final in July 2007, and systems integration was completed on February 19, 2008.

Birmingham-area offices

Superior Bank sign on the John A. Hand Building, April 2009

Superior also had an agreement with Presto!, the ATM network owned by Publix Supermarkets, which allowed all Superior ATM and debit cards to be used at Presto! ATM machines at no charge to its customers.

References

External links