Florida Office of Financial Regulation has closed the Florida-based Commerce Bank of Southwest Florida and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver.
In a move to protect the depositors, the FDIC has entered into a purchase and assumption agreement with Minnesota-based Central Bank, to assume all of the deposits of Commerce Bank of Southwest Florida.
The sole branch of Commerce Bank of Southwest Florida will reopen as a branch of Central Bank. Depositors of Commerce Bank of Southwest Florida will automatically become depositors of Central Bank and deposits will continue to be insured by the FDIC. Customers can continue to use their existing branch until Central Bank can fully integrate the deposit records of Commerce Bank of Southwest Florida.
As of August 28, 2009, Commerce Bank of Southwest Florida had total assets of $79.7m and total deposits of approximately $76.7m. Apart from assuming all of the deposits of the failed bank, Central Bank has also agreed to purchase essentially all of the assets.
In addition, the FDIC and Central Bank entered into a loss-share transaction on approximately $61m of Commerce Bank of Southwest Florida’s assets. Central Bank will share in the losses on the asset pools covered under the loss-share agreement.
