Two Top Ten Failures

Showing that all is still not well for some banks, three more financial institutions failed this week. The first failure was third-ranked First Federal Bank of Lexington. It was closed today by the Office of the Comptroller of the Currency. Your Community Bank (5807th) of New Albany, Indiana has agreed to assume all of the approximately $93.9 million in deposits of the former First Federal Bank. In addition, Your Community Bank has purchases nearly all of the approximately $100.1 million in total asset. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.7 million.


The second failure was fifth-ranked Heritage Bank of North Florida of Orange Park, Florida, was closed today by the Florida Office of Financial Regulation. FirstAtlantic Bank (3301st) of Jacksonville, Florida has agreed to purchase essentially all of the $110.9 million in total assets as well as assume the approximately $108.5 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $30.2 million.

92nd-ranked Chipola Community Bank of Marianna, Florida, was also closed by state regulators today. The very small bank, approximately $39.2 million in total assets and $37.6 million in total deposits, was taken over by First Federal Bank of Florida (4470th) of Lake City, Florida. The FDIC estimates that the cost to the DIF will be $10.3 million.