Jacksonville : Three Bank of Florida lenders were closed by regulators Friday. The company sold about $1.2 billion (Dh4.40 billion) in deposits to EverBank, a firm that specialises in online banking, as the latest round of bank closures sent the 2010 toll to 78.
EverBank purchased the three banks from the Federal Deposit Insurance Corporation (FDIC), which was named receiver, according to statements on the agency's website. Lenders in California and Nevada were also closed, with City National buying the Las Vegas-based Sun West Bank.
The failures have cost the FDIC's deposit-insurance fund $317 million.
"We look forward to welcoming our new customers on Tuesday morning when the former Bank of Florida locations open as branches of EverBank," CEO, Bank of Florida Rob Clements said.
The acquisition will allow EverBank to move into wealth management and private banking.
Major Losses
US banks are collapsing amid losses on residential and commercial real estate loans, and the FDIC's list of ‘problem' lenders is the longest it's been since 1992. FDIC Chairman Sheila Bair said this month the agency's confidential list of ‘problem' banks grew to 775 in the first quarter.
EverBank, based in Jacksonville, Florida, will have approximately $11.5 billion in assets after the pickup. The bank had $7.4 billion in deposits at the end of the first quarter.
The three lenders run by Bank of Florida were all served with "prompt corrective action" notices from the FDIC in March requiring them to raise capital within 30 days. The parent company was Uhoping to sell shares and raise capital and reported a revised first-quarter loss of $48.2 million this month. Los Angeles-based City National paid a premium of 0.67 per cent to the FDIC to assume $353.9 million in deposits at Sun West Bank.
Meanwhile, California-based Tri Counties Bank bought the assets and deposits of Granite Community Bank which was closed by the Office of the Comptroller of the Currency. Granite's branches will reopen on June 1 as part of the 58-branch network of Tri Counties.
Since the beginning of the year, 13 banks in Florida, six banks in California and two banks in Nevada have been closed by regulators.
