Trio of Failures Brings Year's Toll to Eight

Regulators seized two banks in Florida, and one in Kentucky, in a trio of failures Friday.

In Florida, regulators shuttered the $111 million-asset Heritage Bank of North Florida in Orange Park and the $39 million-asset Chipola Community Bank in Marianna. Earlier, the $100 million-asset First Federal Bank was closed in Lexington, Ky. The three failures brought the year's total to eight.

The failures are estimated to cost the Federal Deposit Insurance Corp. just over $50 million. The FDIC announced sales with three acquirers for the banks' operations that will protect all of the depositors.

FirstAtlantic Bank in Jacksonville, Fla., will assume all of the $108 million of deposits from Heritage Bank of North Florida, and begin operating the failed bank's two branches starting Monday. FirstAtlantic also agreed to purchase roughly all of the failed bank's assets. The failure was estimated to cost just over $30 million.

First Federal Bank of Florida, in Lake City, agreed to assume all of Chipola Community's $38 million in deposits and acquire essentially all of its assets. The failed bank had only one branch, which will reopen under the acquirer's management on Monday. The failure was estimated to cost $10.3 million.

Meanwhile, the FDIC sold the Kentucky bank's operations to Your Community Bank in New Albany, Ind., which agreed to assume all of the failed bank's $94 million in deposits and buy essentially all of its assets. The failed institution had five branches, which will reopen starting Saturday as branches of Your Community Bank. The failure, the first in Kentucky since September 2009, was estimated to cost the FDIC $9.7 million.