A Florida bank with nearly $0.3 billion in assets was taken over by federal bank regulators last week. More than a third of the bank’s assets were invested in residential or commercial mortgages.
Finding that The First National Bank of Florida experienced substantial dissipation of its assets and earnings because “unsafe or unsound practices,” the Office of the Comptroller of the Currency Friday declared the financial institution out of business.
“The OCC also found that the bank is likely to incur losses that will deplete its capital and that the bank is significantly undercapitalized, and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance,” an OCC statement said.
The First National Bank was established in 1984. The company employed 80 people as of June 30. It owned $35 million in home loans. Commercial real estate holdings were $79 million, while $65 million was tied up in construction-and-development loans.
The Federal Deposit Insurance Corp. was named receiver of the Milton, Fla.-based bank.
Georgia’s CharterBank will assume all of the failed bank’s $280 million in deposits, and it will acquire all of its $297 million in assets.
The FDIC agreed to a loss-share deal on $216 million of the acquired assets. The cost to the Deposit Insurance Fund was estimated at $47 million.
The First National Bank was the 71st FDIC-insured bank failure so far in 2011.
It was the 101st mortgage-related entity to go out of business this year based on MortgageDaily.com data.
