The Office of the Comptroller of the Currency closed Lydian Private Bank in Palm Beach, Fla., on Friday.

The $1.7 billion-asset bank is the 10th bank to fail in Florida this year. Its failure is expected to cost the Deposit Insurance Fund $293.2 million.

The Federal Deposit Insurance Corp. sold the bank's assets to Sabadell United Bank, the U.S. bank of Spanish company Banco Sabadell. Sabadell and the FDIC entered into a loss-share agreement on $907.1 million of Lydian's assets. The buyer also agreed to assume the bank's $1.24 billion of deposits.

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