April 20, 2013

Kentucky Bank Seized by FDIC

The FDIC shuttered three banks on Friday, including one in Lexington, Kentucky, bringing the number of bank closures in the U.S. in 2013 to eight.

Another two banks were closed in Florida, with the third being First Federal Bank, based in Lexington.

First Federal Bank has close to $100.1 million in assets and $93.9 million in deposits as of the end of 2012. Deposits and assets held by First Federal Bank will be assumed by Your Community Bank, based in New Albany, Indiana.

Two banks based in Florida were also closed, including Heritage Bank of North Florida and Chipola Community Bank.

Heritage Bank had approximately $110.9 million in assets and $108.5 million in deposits, while Chipola Community Bank, based in Marianna, had one branch and close to $39.2 million in assets and $37.6 million in deposits.

Taking over the deposits and assets of Heritage Bank will be FirstAtlantic Bank, based in Jacksonville, Florida.

First Federal Bank of Florida, in Lake City, Florida, will assume the deposits and acquire almost all of Chipola's assets.
The FDIC will pay out about $50.2 million for the three bank failures.

Bank Failures have been winding down since it peaked in 2010 when 157 banks were shuttered by the FDIC. A total of 92 banks failed in 2011 and another 51 in 2012.

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