2 Banks Closed on Jan. 7

First Failed Institutions of 2011
2 Banks Closed on Jan. 7
Federal and state regulators closed two banks on Friday, Jan. 7.

These latest failures are the first of 2011:

First Commercial Bank of Florida, Orlando

First Commercial Bank of Florida, Orlando, Fla., was closed by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Southern Bank, Boca Raton, Fla., to assume all of the deposits of First Commercial Bank of Florida.

The nine branches of First Commercial Bank of Florida will reopen on Monday as branches of First Southern Bank. Depositors of First Commercial Bank of Florida will automatically become depositors of First Southern Bank.

As of Sept. 30, 2010, First Commercial Bank of Florida had approximately $598.5 million in total assets and $529.6 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $78.0 million.

Legacy Bank, Scottsdale, Ariz.

Legacy Bank, Scottsdale, Ariz., was closed by the Arizona Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust, St. Louis, Missouri, to assume all of the deposits of Legacy Bank.

The two branches of Legacy Bank will reopen on Monday as branches of Enterprise Bank & Trust. Depositors of Legacy Bank will automatically become depositors of Enterprise Bank & Trust. Deposits will continue to be insured by the FDIC. Customers of Legacy Bank should continue to use their existing branch until they receive notice from Enterprise Bank & Trust that it has completed systems changes to allow other Enterprise Bank & Trust branches to process their accounts as well.

As of Sept. 30, 2010, Legacy Bank had approximately $150.6 million in total assets and $125.9 million in total deposits.

The FDIC estimates that the cost to the DIF will be $27.9 million.


About the Author

Tom Field

Tom Field

Senior Vice President, Editorial, ISMG

Field is responsible for all of ISMG's 28 global media properties and its team of journalists. He also helped to develop and lead ISMG's award-winning summit series that has brought together security practitioners and industry influencers from around the world, as well as ISMG's series of exclusive executive roundtables.




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