May 28, 2010 – Bank of Florida – Southeast, Fort Lauderdale, Florida, Bank of Florida – Southwest, Naples, Florida and Bank of Florida – Tampa Bay, Tampa Florida were all closed today by the Florida Office of Financial Regulation. All three banks were owned by the same holding company – Bank of Florida Corporation. The FDIC, appointed as receiver, sold all three failed banks to EverBank of Jacksonsville, Florida under a purchase and assumption agreement.
The failed Florida banks had a total of 13 branches, all located in Florida. The three failed banks had total combined assets of $1.48 billion and total deposits of $1.3 billion. EverBank agreed to assume all deposits and essentially all of the failed banks’ assets. All three failed banks will reopen on Tuesday, after the Memorial Day holiday, as branches of EverBank.
As has been the case with almost all recent banking failures, the FDIC entered into a loss-share agreement with EverBank to limit potential losses on the purchase of the failed banks’ assets. The loss-share transaction between the FDIC and EverBank cover $1.2 billion (82%) of the three failed banks’ assets. The estimated cost to the FDIC Deposit Insurance Fund for all three failed banks is estimated at $203 million.
With default rates continually increasing on commercial real estate and estimates of up to another 5 million homes heading towards foreclosure, it is not surprising that this year’s banking failures are expected to exceed last year’s total of 140 banks. In addition, the number of Problem Banks reported by the FDIC has expanded greatly. As of the latest report released by the FDIC there were 775 problem banks at March 31, 2010 up from 702 at the end of 2009. Total assets held by the troubled institutions is $431.2 billion, up from $402.8 billion at the end of 2009.
Florida now ranks as the State with the most banking failures for 2010 with a total of 13 banking failures. Illinois trails with a total of 11 banking failures followed by Georgia with a total of 8.