Another week, another bank failure: the Commissioner of Florida’s Office of Financial Regulation shuttered Bradenton, FL-based First Priority Bank on August 1, first bank failure in the states since March 12, 2004. The Federal Deposit Insurance Corp. was named receiver. Atlanta, GA-based SunTrust Bank promptly assumed First Priority’s $214 million in insured deposits and will purchase $42 million of its assets; the failed bank’s six branches reopened on August 4 under the SunTrust name. First Priority had $259 million of total assets and $227 of total deposits.
In a separate deal, Plano, TX-based LNV Corp. agreed to purchase $14 million of First Priority’s assets. The FDIC will hold onto the remaining $203 million for now. The eighth bank failure of 2008 will take a $72-million bite out of the FDIC’s Deposit Insurance Fund.