Almost $1 Billion to Close Banks by the FDIC

The following information comes from the FDIC’s site for the week closing April 29th. The total loss to the Deposit Insurance Fund (DIF) and loss-share tranactions is $964.50 million.

Information for Community Central Bank, Mount Clemens, MI

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $183.2 million. Compared to other alternatives, Talmer Bank & Trust’s acquisition was the least costly resolution for the FDIC’s DIF. Community Central Bank is the 39th FDIC-insured institution to fail in the nation this year, and the second in Michigan. The last FDIC-insured institution closed in the state was Peoples State Bank, Hamtramck, on February 11, 2011.

Bank of the Ozarks, Little Rock, Arkansas, Acquires All the Deposits of Two Georgia Banks

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for First Choice Community Bank will be $92.4 million; and for The Park Avenue Bank, $306.1 million. Bank of the Ozarks’ acquisition of all the deposits of the two institutions was the “least costly” option for the DIF compared to all alternatives.

Premier American Bank, National Association, Miami, Florida, Acquires All the Deposits of Two Florida Banks

The FDIC and Premier American Bank, N.A. entered into loss-share transactions on the failed banks’ assets. The loss-share transaction for First National Bank of Central Florida was $270.0 million; and the loss-share transaction for Cortez Community Bank was $51.3 million. Premier American Bank, N.A. will share in the losses on the asset pools covered under the loss-share agreements. The loss-share transactions are projected to maximize returns on the assets covered by keeping them in the private sector. The transactions also are expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Information for First National Bank of Central Florida, Winter Park, FL

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for First National Bank of Central Florida will be $42.9 million; and for Cortez Community Bank, $18.6 million. Premier American Bank, N.A.’s acquisition of all the deposits of the two institutions was the “least costly” option for the DIF compared to all alternatives.

      
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