The nation's tenth bank failure this year, Integrity Bank, had 60% of its assets tied up in construction and development loans and 50% of those loans were seriously delinquent when Georgia regulators closed the $1.1 billion bank. The Federal Deposit Insurance Corp. sold the deposits for a 1% premium to Regions Bank, Birmingham, but FDIC will have to sell off the assets, including the $668.4 million in C&D loans and $8.5 million in real estate owned. The Alpharetta, Ga., bank reported a $33.6 million loss for the second quarter. FDIC estimates the failure will cost the deposit insurance fund $250 million to $350 million.
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