Three Banks Collapse Over Weekend, Raising 2013 Tally to 8

The 2013 national bank failure tally ran up to eight this weekend as three more institutions fell by the wayside.

FDIC announced the collapses of Chipola Community Bank in Marianna, Florida; Heritage Bank of North Florida in Orange Park; and First Federal Bank in Lexington, Kentucky. The last time so many banks shut down at the same time was October 19, 2012.

Chipola Community Bank and Heritage Bank of North Florida were both closed by the Florida Office of Financial Regulation, which appointed FDIC as receiver of both.

According to FDIC, First Federal Bank of Florida (based in Lake City) will assume all of Chipola’s $37.6 million in total deposits and will purchase “essentially all” of the failed bank’s $39.2 million in assets. Meanwhile, FirstAtlantic Bank (in Jacksonville) has agreed to assume or purchase all of Heritage Bank’s $108.5 million in deposits and $110.9 million in assets.

The two banks mark Florida’s first collapses in 2013. Notably, the last FDIC-insured institution to close in the state was Heritage Bank of Florida, based in Lutz.

In Kentucky, Your Community Bank entered into a purchase and assumption agreement over First Federal Bank’s deposits and assets. The former has agreed to assume all of the latter’s $93.9 million in deposits and to purchase nearly all $100.1 million in total assets.

First Federal Bank is the first to close in Kentucky this year. The last time the state saw an FDIC-insured bank fail was September 18, 2009, according to the agency.

Combined, the three collapses cost the Deposit Insurance Fund an estimated $50.2 million, which the FirstAtlantic acquisition being the most costly (at $30.2 million).

By: Tory Barringer, DSNews