Gentlepeople, Start Your Weekend! April 19-21, 2013

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4. We Hit the Trifecta! Three Banks Fail This Weekend, two in Florida

First Federal Bank, Lexington, Kentucky, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Your Community Bank, New Albany, Indiana, to assume all of the deposits of First Federal Bank. The five branches of First Federal Bank will reopen during their normal business hours beginning Saturday as branches of Your Community Bank...

As of December 31, 2012, First Federal Bank had approximately $100.1 million in total assets and $93.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, Your Community Bank agreed to purchase essentially all of the assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.7 million. Compared to other alternatives, Your Community Bank's acquisition was the least costly resolution for the FDIC's DIF. First Federal Bank is the sixth FDIC-insured institution to fail in the nation this year, and the first in Kentucky. The last FDIC-insured institution closed in the state was Irwin Union Bank, FSB, Louisville, on September 18, 2009.

Heritage Bank of North Florida, Orange Park, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with FirstAtlantic Bank, Jacksonville, Florida, to assume all of the deposits of Heritage Bank of North Florida. The two branches of Heritage Bank of North Florida will reopen on Monday as branches of FirstAtlantic Bank...

As of December 31, 2012, Heritage Bank of North Florida had approximately $110.9 million in total assets and $108.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, FirstAtlantic Bank agreed to purchase essentially all of the assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $30.2 million. Compared to other alternatives, FirstAtlantic Bank's acquisition was the least costly resolution for the FDIC's DIF. Heritage Bank of North Florida is the seventh FDIC-insured institution to fail in the nation this year, and the first in Florida. The last FDIC-insured institution closed in the state was Heritage Bank of Florida, Lutz, on November 2, 2012.

Chipola Community Bank, Marianna, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Federal Bank of Florida, Lake City, Florida, to assume all of the deposits of Chipola Community Bank. The sole branch of Chipola Community Bank will reopen on Monday as a branch of First Federal Bank of Florida...

As of December 31, 2012, Chipola Community Bank had approximately $39.2 million in total assets and $37.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Federal Bank of Florida agreed to purchase essentially all of the assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.3 million. Compared to other alternatives, First Federal Bank of Florida's acquisition was the least costly resolution for the FDIC's DIF. Chipola Community Bank is the eighth FDIC-insured institution to fail in the nation this year, and the second in Florida. The last FDIC-insured institution closed in the state was Heritage Bank of North Florida, Orange Park, earlier today.

DARE WE LAY THIS BOUNTY AT THE FEET OF THE SEQUESTER?