Office of the Comptroller of the Currency (OCC) has closed Florida-based Republic Federal Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The closure marks the 131st FDIC-insured institution to fail in the US this year
To protect the depositors, the FDIC has entered into a purchase and assumption agreement with Florida-based 1st United Bank, to assume all of the deposits of Republic Federal Bank.
The four branches of Republic Federal Bank will reopen as branches of 1st United Bank. Depositors of Republic Federal Bank will automatically become depositors of 1st United Bank. Deposits will continue to be insured by the FDIC. Customers can continue to use their existing branches until they receive notice from 1st United Bank that it has completed systems changes to allow other 1st United Bank branches to process their accounts as well.
As of September 30, 2009, Republic Federal Bank had total assets of approximately $433m and total deposits of approximately $352.7m. 1st United Bank will pay the FDIC a premium of 1.2% to assume all of the deposits of Republic Federal Bank. In addition to assuming all of the deposits of the failed bank, 1st United Bank agreed to purchase $267.1m of the failed bank’s assets.
The FDIC and 1st United Bank have also entered into a loss-share transaction on approximately $210.4m of Republic Federal Bank’s assets. 1st United Bank will share in the losses on the asset pools covered under the loss-share agreement.
