July 16, 2010 – Olde Cypress Community Bank, Clewiston, Florida was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, N.A., Winter Haven, Florida. CenterState Bank will assume all of the deposits and assets of failed Olde Cypress Bank.
The four branches of Olde Cypress will reopen as branches of CenterState Bank and depositors will automatically become customers of CenterState Bank.
At March 31, 2010, Olde Cypress had total assets of $168.7 million and total deposits of $162.4 million. CenterState Bank did not pay a premium on the purchase of the failed bank’s deposits.
The FDIC and CenterState Bank entered into a loss share transaction on $128.2 million of the assets of Olde Cypress Bank. The loss-share agreement is expected to maximize the return on assets by keeping them in the private sector and minimize disruptions for loan customers. CenterState Bank will share in the losses on the assets covered by the loss-share agreement.
Olde Cypress Community Bank is the nation’s 95th banking failure of 2010 and the seventeenth banking failure in Florida. The cost to the FDIC Deposit Insurance Fund to close Olde Cypress is estimated at $31.5 million.