Following a lull in bank failures, Florida regulators stepped in to seize a small institution on the Gulf Coast. More than 17,000 depositors were impacted the recent failure of a Wisconsin credit union.
Horizon Bank was seized Friday by the Florida Office of Financial Regulation. The Federal Deposit Insurance Corp. was appointed receiver.
The Bradenton, Fla.-based company was founded in 1999 and employed 40 people.
In March, it faced a prompt corrective action directive from the Federal Reserve Board. The bank entered a formal agreement with the State of Florida Office of Financial Regulation and the Federal Reserve Bank of Atlanta in November 2009.
Horizon had $165 million in total deposits as of June 30, according to FDIC data. Assets ended June at $188 million and included $49 million in one- to four-unit residential loans, $63 million in commercial mortgages and $16 million in construction-and-development assets.
Stepping in to assume of the deposits at par was Bank of the Ozarks. In addition, the Little Rock, Ark.-based institution acquired all of Horizon’s assets with the FDIC agreeing to share in losses on $150 million of the assets.
Factoring in the loss-sharing agreement, the FDIC projects that its Deposit Insurance Fund will be depleted by $60 million as a result of Horizon’s failure — the 119th federally insured bank failure this year.
Regulators had been on a furious pace seizing banks, with several bank failures most weeks of this year. But Horizon has been the only bank failure during the past three weeks. The last time a bank was seized was on Aug. 20 — when eight banks were closed down.
Earlier this month, the National Credit Union Administration stepped in to shut down First American Credit Union in Beloit, Wis.
“First American Credit Union’s declining financial condition led to its closure,” the NCUA stated.
The 17,447 members of First American, which served a region of Wisconsin, are now served by Michigan’s First Community Federal Credit Union — which assumed liabilities and $137 million in assets of First American.
The NCUA said First American was the 15th federally insured credit union to liquidate this year. Mortgage Daily has tracked the demise of 16 credit unions during 2010.
Including banks, credit unions and non-bank lenders — the closing or failure of 148 mortgage-related entities has been chronicled at the Mortgage Graveyard.
