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FDIC: Small Florida Bank is Closed


We have another Friday bank failure. Here's the FDIC press release. It was a small Florida bank, First Priority Bank in Bradenton, Florida. The FDIC has arranged for SunTrust Bank to acquire all the insured deposits.

Unlike the banks that failed last Friday, this time there will be some depositors who'll lose money. According to the FDIC, depositors will only receive 50% of their uninsured deposits. There were approximately $13 million in uninsured deposits held in approximately 840 accounts that potentially exceeded the insurance limits. Last week, the FDIC covered 100% of the uninsured deposits of the two banks that failed. This 50% is the same that the FDIC covered in the Indymac Bank failure (see post).

Bankrate's Safe & Sound rating was accurate for this case with a 1-star rating (lowest) based on 3/31/08 data. BauerFinancial also gave the bank its lowest rating (zero stars).

I'm glad the financially troubled Florida banks that have been advertising the very high CD rates (see my Florida page) did not go under (at least not by 8:10pm EDT). I looked back in my archives and I don't seem to have any posts from First Priority. So if they were advertising high CD rates, I missed them.

Please see my Facts about FDIC and NCUA Post for more general info and references.

Thanks to the reader who emailed me news of this closure.

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O-Qua Tangin Wann
O-Qua Tangin Wann   |     |   Comment #1
Thank you, Banking Guy, for continuing to post the details of every bank failure. Your posts have the positive effect of reminding all of us to watch our FDIC/NCUA insurance limits.

~O-Qua Tangin Wann
Anonymous   |     |   Comment #2

FDIC warns four US banks over liquidity
The Federal Deposit Insurance Corporation revealed on Friday that it had issued warnings to four small US banks that lacked sufficient reserves to cover potential loan losses.

The cease-and-desist orders issued in June said the four banks needed to raise more capital, expand their loss allowances and better oversee and diversify their loan portfolios

The banks receiving cease-and-desist orders in June were MetroPacific Bank in Irvine, California; Bank Haven in Haven, Kansas; Clarkston State Bank in Clarkston, Michigan; and Hastings State Bank in Hastings, Nebraska.