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Only One Friday Bank Failure: The First National Bank of Florida

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Only One Friday Bank Failure: The First National Bank of Florida

Just one bank was closed by regulators this Friday. The failed bank was The First National Bank of Florida, a small bank based in the city of Milton which is just northeast of Pensacola. That makes 71 failed banks in the nation and 11 failed banks in Florida for 2011. Georgia still has a big lead in the number of 2011 failures (19). Florida is in second place and Illinois is in third place with 7 failures.

Coincidentally, one year ago on September 10, 2010 there was also just one Florida bank failure. That bank failure was the 119th in the nation and 23rd in Florida for 2010. As you can see, the number of bank failures have gone down quite a bit from last year.

This latest bank failure was a typical closure. The FDIC arranged for CharterBank to assume all deposits of First National Bank of Florida including brokered deposits. So no depositor lost any money including deposits over the FDIC limit.

As usual, the only concern for the failed bank's depositors will be the possibility that rates on existing CDs will be lowered. CharterBank's website currently doesn't have any details about what may happen to those CD rates, and the FDIC just has its typical line "Current rates will be reviewed by the new bank and may be lowered; however, you may withdraw funds from any transferred account without early withdrawal penalty until you renew your Certificate of Deposit."

There were no credit union liquidations this week. The total number of liquidated federally insured credit unions for the year is 12. There was also one ASI-insured credit union that was liquidated last month.

Below is the summary of Friday's bank failure.

71st Bank Failure of 2011 (11th in Florida)

  • FDIC Press Release
  • Closed Bank: The First National Bank of Florida, Milton, FL
  • Size: 8 branches, $296.8 million in assets, $280.1 million in deposits
  • Acquiring Bank: CharterBank, West Point, GA
  • Possible Uninsured Deposits: All deposit accounts, including brokered deposits, have been assumed by CharterBank
  • Rate Changes: Current rates will be reviewed by the new bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $46.9 million
  • Enforcement Action: OCC 3/5/09 Consent Order
  • Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 381.42% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at Bankrate.com & DepositAccounts.com, Texas Ratios over 100% is considered at risk. DepositAccounts.com and BauerFinancial ratings are based on June 2011 data. Bankrate ratings are based on March 2011 data.

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