Mortgage Daily Logo

Florida Financial Institution Fails Friday

Mortgage News

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.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam