Three more banks have been closed, according to the Federal Deposit Insurance Corp (FDIC). MagnetBank in Salt Lake City; Suburban Federal Savings Bank in Crofton, Md.; and Ocala National Bank in Ocala, Fla., have all been closed, with the FDIC named as receiver.
The FDIC was unable to find another financial institution to take over MagnetBank, which was closed by the Utah Department of Financial Institutions. As a result, checks to the retail depositors for their insured funds will be mailed, and brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. As of Dec. 2, 2008, the bank had total assets of $292.9 million and total deposits of $282.8 million. It is estimated that MagnetBank did not have any uninsured funds.
Suburban Federal was closed by the Office of Thrift Supervision, and the FDIC has entered into a purchase and assumption agreement with Bank of Essex, Tappahannock, Va., to assume all of the deposits of Suburban Federal. As of Sept. 30, 2008, Suburban Federal had total assets of approximately $360 million and total deposits of $302 million. In addition to assuming all of the failed bank's deposits, Bank of Essex has agreed to purchase approximately $348 million in assets at a discount of $45 million. The FDIC will retain the remaining assets for later disposition.
The FDIC and Bank of Essex have entered into a loss-share transaction. Bank of Essex will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is expected to maximize returns on the assets covered by keeping them in the private sector.
Ocala National, closed by the Office of the Comptroller of the Currency, will be purchased by CenterState Bank of Florida in Winter Haven, Fla. The FDIC entered into a purchase and assumption agreement with CenterState to assume all of the deposits of Ocala National. Ocala National Bank had total assets of $223.5 million and total deposits of $205.2 million as of the end of 2008. Ocala National also had approximately $17.2 million in brokered deposits that are not part of the transaction.