Closed Friday, June 7, 2013 · Sevierville, Sevier County, Tennessee
Mountain National Bank
Mountain National Bank was the second-largest of the 24 bank failures in 2013. Of the 70 failed banks on record in Tennessee since 1934, it ranks third by size. It reported a net loss in five of its final nine reporting years.
On the books, 2005 to 2013
Total assets peaked at $692 million in the first quarter of 2009 and were 37% lower at the final report. Equity capital went from 7.1% of assets in the second quarter of 2005 to 2.0% at the last report. By then 13% of its loans were 90 days or more past due or no longer accruing interest. The deepest annual loss, $38.8 million, was booked in 2011.* 2013: January to March only, the last report before closing.
Size against the other 2013 failures
Total assets of each 2013 failure, log scale; Mountain National Bank in red.
Across the failures of 2013, the median estimated loss came to 24% of assets. In the size ranking of that year, just above it was First National Bank also operating as The National Bank of El Paso of Edinburg, Texas ($3.1 billion, loss 20% of assets); just below, Community South Bank of Parsons, Tennessee ($387 million, loss 34% of assets). Every 2013 failure in the explorer.
Failures in Tennessee
It was one of two banks in Tennessee to fail in 2013. The previous failure there was The Farmers Bank of Lynchburg of Lynchburg, on June 15, 2012. The next was Community South Bank of Parsons, on August 23, 2013. No other failed bank in the FDIC's records was based in Sevier County.