Glenn Beck

[EarlyOne]

Florida Bank Failure is First of 2011

01/07/11 - 07:00 PM EST

ORLANDO, Fla. (TheStreet) - State regulators shuttered First Commercial Bank of Florida Friday for the first bank failure of 2011.

After the Florida Office of Financial Regulation seized the institution, the Federal Deposit Insurance Corp. was appointed receiver and sold the failed bank's $598.5 million in total assets and $529.6 million in total deposits to First Southern Bank of Boca Raton, Fla.
First Commercial Bank of Florida had been previously included in TheStreet's Bank Watch List of undercapitalized institutions, based on third-quarter regulatory data provided by SNL Financial.

The institution had been operating under a Prompt Corrective Action directive handed down by the Federal Reserve on Sept. 27, under which the bank agreed to raise sufficient capital to become adequately capitalized or sell the bank within 45 days. The order followed a written agreement in March, when First Commercial Bank of Florida agreed to take various actions to improve its credit quality and submit a capital plan within 60 days. The bank was negatively capitalized as of September 30.
The failed bank's nine offices were scheduled to reopen Monday as First Southern Bank branches. The FDIC agreed to cover 80% of losses on $484.3 million of the assets acquired by First Southern Bank and estimated the cost to the deposit insurance fund would be $78 million.