The Office of Thrift Supervision shut down Turnberry Bank of Aventura, Florida, yesterday on July 16, 2010. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver.
Turnberry Bank was a full service community bank which had served South Florida since 1985. Branches were located in Aventura, Coral Gables, Pinecrest, and South Miami, Florida. The bank had total deposits of $196.9 million and total assets of $263.9 million.
To protect depositors, the FDIC entered into a purchase and assumption agreement with NAFH National Bank of Miami, Florida. NAFH National Bank will assume all deposits and essentially all assets of Turnberry Bank along with two other banks that failed on Friday, Metro Bank of Dade County, Florida and First National Bank of the South of Spartanburg, South Carolina.
Turnberry Bank will reopen as a branch of NAFH National Bank under normal business hours. Depositors will automatically become depositors of NAFH National Bank, with deposits insured by the FDIC.
The FDIC and NAFH National Bank entered into a loss share transaction on $194.6 million of the assets of Turnberry Bank. The loss-share agreement is expected to maximize returns on assets by keeping them in the private sector and minimize disruptions for loan customers.
Estimated cost to the Deposit Insurance Fund (DIF) related to the failure of Turnberry Bank has been estimated at $34.4 million by the FDIC.