Updated with information subsequently released by the FDIC, regarding brokered deposits at First Guaranty Bank and Trust Company and Tennessee Commerce Bank.
NEW YORK ( TheStreet) -- State regulators on Friday shut down four banks, bringing this year's total number of bank failures to seven.
First Guaranty Bank and Trust CompanyThe Florida Office of Financial Regulation closed First Guaranty Bank and Trust Co. of Jacksonville, which had $377.9 million in total assets and $349.5 million in deposits when it failed. The Federal Deposit Insurance Corp. was appointed receiver, and sold the failed institution's assets and deposits, "except for certain brokered deposits," to CenterState Bank of Florida, NA, of Winter Haven. The FDIC agreed to cover 80% of losses on $292.9 million of the acquired assets. The acquiring is a subsidiary of CenterState Banks (CSFL), and just last week, purchased the failed Central Florida State Bank. First Guaranty Bank and Trust's eight branches were scheduled to reopen Monday as branches of CenterState Bank of Florida, NA. The FDIC estimated that the cost of First Guaranty Bank ad Trust's failure to the deposit insurance fund would be $82.0 million. Customers of the failed bank with deposits made through brokers will need to contact their brokers directly for more information, since the FDIC pays insured balances directly to the brokers. Interested in more on CenterState Banks? See TheStreet Ratings' report card for this stock.
Tennessee Commerce BankState Regulators closed Tennessee Commerce Bank of Franklin, which had $1.185 billion in total assets and $1.156 million in deposits when it failed. The failed bank was held by Tennessee Commerce Bancorp (TNCC), and slipped from well capitalized to undercapitalized in the third quarter, when it booked a net loss of $102.8 million, which the holding company said resulted from "a $92.6 million charge to provision expense during the third quarter," resulting from "preliminary loan losses of $76.3 million combined with $12.1 million of specific reserves on classified loans identified by examiners" of the FDIC and the Tennessee Department of Financial Institutions. The FDIC was appointed receiver and sold the failed bank's deposits -- except for some brokered deposits -- to Republic Bank & Trust Co. of Louisville, Ky., which is the main subsidiary of Republic Bancorp (RBCAA). Republic Bank & Trust agreed to take on just $203.9 million of the failed bank's assets, with the FDIC retaining the rest for later disposition. The failed bank's office was set to reopen Monday as a branch of Republic Bank & Trust. The FDIC estimated that the cost to the deposit insurance fund from Tennessee Commerce Bank's failure would be $416.8 million. Customers with brokered deposits will need to contact their brokers for more information.
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