Federal banking regulators seized a small financial institution in the Florida Panhandle that was more than a half-century old.
The first bank to fail in 2015 was
First National Bank of Crestview, which was closed Friday by the Office of the Comptroller of the Currency.
The Crestview, Fla.-based firm had experienced substantial dissipation of assets and earnings. The deterioration, according to the regulator, was due to unsafe and unsound practices.
“The OCC also found that the bank incurred losses that depleted its capital, the bank is critically undercapitalized, and there is no reasonable prospect that the bank will become adequately capitalized,” a statement said.
First National had $79 million in total deposits and just $80 million in total assets — including $5 million in residential loans, $4 million in commercial real estate loans and $6 million in construction-and-development loans.
The failed bank was established in 1956. As of Sept. 30, 2014, its total staff stood a 25 people.
First National reached a formal agreement with the OCC in 2009.
The Federal Deposit Insurance Corp. was named receiver and made a deal with First NBC Bank to assume all of First National’s deposits and acquire $62 million of its assets.
First National was
the first mortgage-related business to close or fail so far this year. Losses from its demise are expected to cost the Deposit Insurance Fund more than $4 million.
A notice from rent-to-own specialist Cove Financial Group Inc. indicates that it stopped conducting business at the end of last year.
“We greatly appreciate the opportunity to have provided the Mortgage Alternative Program (MAP) to so many families over the past few years,” the notice states. “However, we regret to inform you that as of 12-31-14, Cove Financial Group Inc. is no longer conducting business or offering MAP.”
Cove Financial was the 15th non-bank mortgage casualty tracked in 2014 by Mortgage Daily and brought total mortgage-related businesses to close or fail last year to 43.
