The First Failure in Two Months

After nearly two months of regulatory restraint, the 34th ranked Bank of Jackson County of Graceville, Florida, was closed Wednesday by state regulators. The pre-Halloween trick converted  the depositors and assets into those held by First Federal Bank of Florida of Lake City, Florida (2335th). At the time of closing Bank of Jackson County had approximately $25.5 million in total assets and $25.0 million in total deposits. First Federal Bank of Florida agreed to purchase approximately $23.1 million of the failed bank’s assets while the FDIC retained the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.1 million.