Sun American BankThe Florida Office of Financial Regulation shut down Sun American Bank of Boca Raton, Fla. and appointed the FDIC receiver. The failed bank was the main subsidiary of Sun American Bancorp ( SAMB) and had roughly $444 million in deposits and $536 million in assets, all of which were acquired by First-Citizens Bank & Trust of Raleigh, N.C., with the FDIC agreeing to share in losses on $433 million of the acquired assets. First-Citizens is held by First Citizens BancShares ( FCNCA). This is the fourth recent acquisition of a failed bank by First-Citizens. The previous was First Regional Bank of Los Angeles., Calif., which failed on Jan. 29. Sun American's 12 branches were set to reopen Monday as branches of First-Citizens. The FDIC estimated the cost to its insurance fund would be $103.8 million.
Bank of IllinoisElsewhere, state regulators closed Bank of Illinois of Normal, Ill. The FDIC was appointed receiver and sold the failed bank's $199 million in total deposits for a significant premium of 3.61% to Heartland Bank & Trust of Bloomington, Ill. Heartland Bank & Trust also agreed to assume the failed bank's $212 million in total assets, with the FDIC agreeing to share in losses on $167 million. The two offices of Bank of Illinois were scheduled to reopen Saturday as Heartland Bank & Trust branches. The FDIC estimated the cost to its insurance fund would be $53.7 million.
Waterfield BankThe Office of Thrift Supervision took over Waterfield Bank of Germantown Md., and appoint the FDIC receiver. Since the FDIC was unable to find a buyer for the failed thrift's $156 million in deposits and $156 million in assets, the agency created Waterfield Bank, FA a new thrift, which would operate until April 5 with the sole purpose of allowing customers to move their insured checking, money market and savings account balances to other institutions.
Centennial BankState Regulators in Utah closed Centennial Bank of Ogden, Utah and appointed the FDIC receiver. The FDIC was unable to find a buyer, but rather than establish a temporary bank to run off insured deposits, the agency elected to mail checks to retail customers for their insured balances on Monday and wire brokered CD deposits directly to brokers after receiving necessary documentation. Customers with brokered CDs were advised to contact their brokers. The FDIC made arrangements with Zions First National Bank, a subsidiary of Zions Bancorp ( ZION) to accept government direct deposits, including Social Security deposits, that were directed to the failed bank. Centennial Bank had $205 million in deposits and $215 million in total assets. The FDIC estimated that there were $1.8 million in uninsured deposits but also said the number was likely to change once it received additional information from customers. The agency estimated the cost to its insurance fund would be $96.3 million.
Ongoing Bank Failure CoverageAll previous bank and thrift failures since the beginning of 2008 are detailed in TheStreet.com's interactive bank failure map: