Florida bank – third to fail this year – closed for long-time capital, assets issues (not pandemic-related)

Longstanding capital and asset quality issues going back more than 10 years were the underlying reasons for a Florida bank becoming the third to fail so far in 2020, the federal insurer of bank deposits said in closing the institution Friday.

According to the Federal Deposit Insurance Corp. (FDIC), First City Bank of Florida in Fort Walton Beach, Fla., was closed by the Florida Office of Financial Regulation (FLOFR). The bank’s closing was not related to the financial impact of the on-going coronavirus crisis, said the FDIC, which was named receiver.

The agency said the cost to its Bank Insurance Fund (BIF) of closing the bank will be an estimated $10 million. First City Bank held $134.7 million in total assets and $131.4 million in total deposits, the agency stated.

United Fidelity Bank, fsb, in Evansville, Ind., agreed to a purchase and assumption of First City’s assets and deposits; two branches of the closed Florida bank opened as branches of the Indiana institution Saturday.

The failure of First City follows those of Ericson State Bank, a $100.9 million institution in Ericson, Neb., closed in February (at an estimated cost of $14.1 million), and The First State Bank in Barboursville, W.V., a $152.4 million institution that will cost the BIF nearly $47 million, according to the agency.

United Fidelity Bank, fsb, Evansville, Indiana, Assumes All of the Deposits of First City Bank of Florida, Fort Walton Beach, Florida