Florida Office of Financial Regulation has closed the Hillcrest Bank Florida and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC has entered into a purchase and assumption agreement with Florida-based Stonegate Bank, to assume all of the deposits of Hillcrest Bank Florida.
According to FDIC, the six branches of Hillcrest Bank Florida will re-open as branches of Stonegate Bank. The depositors of Hillcrest Bank Florida will automatically become depositors of Stonegate Bank. Moreover, the deposits will continue to be insured by the FDIC. Customers can continue to use their existing branches until Stonegate Bank can fully integrate the deposit records of Hillcrest Bank Florida.
Hillcrest Bank Florida had total assets of $83m and total deposits of approximately $84m, as of October 1, 2009. Stonegate Bank will pay the FDIC a premium of 0.50% to assume all of the deposits of Hillcrest Bank Florida. In addition to assuming all of the deposits of the failed bank, Stonegate Bank agreed to purchase $28m of the failed bank’s assets. The FDIC has added that it will retain the remaining assets for later disposition.
