The ongoing credit crunch resulted in the closure of First Priority Bank of Bradenton, Fla., on Friday, the eighth bank closed by the Federal Deposit Insurance Corp. (FDIC) this year. SunTrust Banks (NYSE: STI) assumed the $225 million in insured deposits of First Priority, with the bank’s six locations reopening today as SunTrust branches.
As of June 30 2008, First Priority had total assets of $259 million and total deposits of $227 million. At the time of closing, there were approximately $13 million in uninsured deposits held in approximately 840 accounts that potentially exceeded federally-guaranteed insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers, according to the regulator.
The FDIC added that the cost of the failure to the FDIC insurance fund will be about $72 million. First Priority was the first bank to fail in Florida since Guaranty National Bank in 2004. This year, a total of eight FDIC-insured institutions have been closed.
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