Phoenix-based Sunrise Bank of Arizona — which had one Southern Arizona branch, in Nogales — was closed Friday by federal and state regulators, The Arizona Republic reported.
The Arizona Department of Financial Institutions closed the bank and named the Federal Deposit Insurance Corp. as receiver. Sunrise was owned by Capitol Bancorp Ltd., which has joint headquarters in Phoenix and Lansing, Mich.
As of midyear, Sunrise Bank had roughly $202 million in total assets and $197 million in deposits, making it one of the larger independent Arizona-based banks.
First Fidelity Bank of Oklahoma City., Okla., reached an agreement with the FDIC to assume all of Sunrise’s deposits and to purchase essentially all of Sunrise’s assets.
The six branches of the failed institution will reopen as First Fidelity offices, and Sunrise depositors will automatically become First Fidelity customers. Deposits will continue to carry FDIC insurance, up to normal limits.
First Fidelity already had four Arizona branches, two each in Phoenix and Scottsdale.
Sunrise had two branches in Mesa and one each in Phoenix, Glendale, Scottsdale and Nogales.
The FDIC anticipates Sunrise’s failure will cost the agency’s insurance fund about $17 million.