WASHINGTON — Regulators seized a $265 million-asset bank based in Fort Myers, Fla., late Friday and sold its operations in a deal protecting all of the failed bank's depositors.

First Community Bank of Southwest Florida, which also operated as Community Bank of Cape Coral, became the third bank to fail in the Sunshine State this year.

C1 Bank in St. Petersburg agreed to assume all of the failed bank's $254 million in deposits and essentially all of its assets, the Federal Deposit Insurance Corp. said. The seven branches of First Community Bank of Southwest Florida will reopen for normal business hours under C1 Bank's management.

The failure, the industry's 17th of the year, was estimated to cost the FDIC just over $27 million.

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