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First Bank Failure of 2015 - First National Bank of Crestview in Florida

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First Bank Failure of 2015 - First National Bank of Crestview in Florida

A small bank in the Florida Panhandle failed on Friday marking the first bank failure of 2015. First National Bank of Crestview was closed by the Office of the Comptroller of the Currency (OCC) and appointed the FDIC as the receiver.

The closure of First National Bank of Crestview was typical in that the FDIC was able to find a buyer. The FDIC arranged for First NBC Bank of New Orleans, Louisiana to assume all deposits and to purchase the majority of the assets of the failed bank. Consequently, no depositor lost any money. According to the FDIC FAQs:

No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to First NBC Bank.

CD customers of First National Bank of Crestview will have to wait to see what happens with their rates. According to the FDIC’s Q&A:

Interest on deposits accrued through close of business on January 16, 2015, will be paid at your same rate. First National Bank of Crestview’s rates will be reviewed by First NBC Bank and may be lowered; however, you will be notified in writing of any changes. You may withdraw funds from any transferred account, regardless of whether your interest rate changes, without early withdrawal penalty until you enter into a new deposit agreement with First NBC Bank.

Last year 18 banks failed. The number of bank failures has been declining since 2010 when 157 banks failed. That was the year of the most bank failures since the financial crisis of 2008. For more details, please refer to my review of the 2014 bank and credit union failures.

Below is the summary of the Friday bank failure:

1st Bank Failure of 2015 (1st in Florida) (January 16)

  • Closed Bank: First National Bank of Crestview, Crestview, FL
  • FDIC Press Release
  • Size: 3 branches, $79.7 million in assets and $78.6 million in deposits
  • Acquiring Bank: First NBC Bank, New Orleans, LA
  • Possible Uninsured Deposits: all deposit accounts, including brokered deposits, has been assumed by First NBC Bank (FDIC Q&A)
  • Rate Changes: First National Bank of Crestview’s rates will be reviewed by First NBC Bank and may be lowered (FDIC Q&A)
  • Estimated Cost to Deposit Insurance Fund: $4.4 million
  • Financial Ratings: 1 star at Bankrate.com, 0 stars at BauerFinancial, F & Texas Ratio of 502% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at Bankrate.com and an F is lowest at DepositAccounts.com &, Texas Ratios over 100% is considered at risk. Ratings at DepositAccounts.com Bankrate.com and BauerFinancial are based on September 30, 2014 data.

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