First Priority Latest Bank Casualty

FDIC Takes Control Of First Priority Bank In Bradenton, Fla.; 8th Bank Failure In 2008

(AP)  The Federal Deposit Insurance Corp. said Friday it has taken control of the First Priority Bank of Bradenton, Fla., and that SunTrust Banks Inc. will assume the bank's deposits.

First Priority is the eighth U.S. bank to fail this year in the aftermath of the mortgage crisis, and the first Florida bank failure since March 2004. Andrew Gray, spokesman for the FDIC, said the bank had "significant loan losses" in the Florida commercial real estate market that eroded its capital.

Last month, California mortgage lender IndyMac Bancorp Inc. became the largest regulated thrift to fail in U.S. history. IndyMac's holding company filed for Chapter 7 bankruptcy protection on Thursday.

On Friday, the Florida Office of Financial Regulation closed First Priority of Bradenton, the FDIC said. The FDIC was then named receiver of the bank, and entered into an agreement with Atlanta-based SunTrust Bank to assume its insured deposits.

The six branches of First Priority Bank will reopen on Monday as SunTrust branches.

"It will be a pretty seamless transition for the depositors," Gray said.

Announcements of bank failures tend to be made after the close of business on a Friday, so the banks can reopen under new ownership the following Monday morning. A week ago, the 28 branches of the 1st National Bank of Nevada and First Heritage Bank N.A. - owned by Scottsdale, Ariz.-based First National Bank Holding Co. - were closed by the FDIC, with the assets ought by Mutual of Omaha Bank.

SunTrust Banks was the 13th largest bank by assets as of March 31, with nearly $179 billion in assets, according to American Banker. In addition to assuming the failed bank's insured deposits, it will buy about $42 million of First Priority's assets. LNV Corp. of Plano, Texas, has agreed to buy another $14 million of the failed bank's assets. The FDIC will keep the remaining assets for later disposition, it said.

As of June 30, First Priority had total assets of $259 million and total deposits of $227 million - $13 million of which were uninsured deposits, the FDIC said. It estimated that those deposits were held in about 840 accounts that potentially exceeded the FDIC's $100,000 per depositor insurance limit.

For those account holders, the FDIC recommends calling it toll free at 1-800-837-0215 to set up an appointment to discuss their deposits. The FDIC said it will pay depositers with amounts exceeding the limit 50 percent of their uninsured balance.

[concorde5]

I agree, this is no doubt the worst president in US History.

[patriot12436]

Now would be an excellent time to take any spare c ash you have and invest it in 18 or 24k gold. That way you can convert it to any currency you want in the future.

[wardoglrs]

You keep blaming re-pub''s this is not the case you are uninformed it is both parties. One is not better than the other there both sold out there souls for a buck. You are in major danger by these two parties they don''t serve you they serve themselves at your tax dollars expense. Good lord people what the hell is wrong with you?. Your sold lock stock and barrel and the next thing you need to know is Bush isn''t office
we are going to marshal law as soon as they set the stage for the event very soon. Your Money is worthless and your homes are owned by foreigners.

This is what you voted for what did you expect?. You did this YOU.
Your best hope was Dr Paul. Now its Bob Barr, so choise wisly, If you can..

[rgmiron]

"You''''ll see people freezing to death this winter, followed by starvation next spring and summer. This is the result of 8 years of republican ''''trickle down'''' economics. Give the wealthy tax breaks, this will lead to new jobs they said." Posted by iphyt4u at 09:55 AM : Aug 03, 2008

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It has nothing to do with the politics, It is the greedy Financial institutions and the lack of oversite by the reguators that caused this mess but I fear your predictions could come true.
We the people voted in citizens who promised to work for the good of the people, instead the worked for the good of the rich. We thought by putting Bush in the presidency we were placing a man familar with the oil industry and he would work for our betterment. Instead he sold use out to the globalists and oil men. Our congressional representitives were worse, they sold us out for power and money.
I fear for the future when I read the blogs, we as a people are much more weaker than I had originally thought. Violents, hunger, we truly are SHEEPLE!!

[iphyt4u]

The Fox network is saying that the markets will open higher on Monday. The job loss numbers weren''t as high as expected. Folks, things are going to get much worse. Do Not believe anything coming from the media, or your government. The financial sector is the cornerstone to growth or failure. The financial sector is using deception to string along investers. The government can''t keep giving money to these institutions. You''ll see people freezing to death this winter, followed by starvation next spring and summer. This is the result of 8 years of republican ''trickle down'' economics. Give the wealthy tax breaks, this will lead to new jobs they said.

[greeneyes222]

"Just one more problem with the Republican Way of secrecy."

Nobody''s defending GW, but Pelosi and Reid didn''t help matters. They had an opportunity to step up, instead they played the GW finger-pointing game.

A pox on both parties. This isn''t Republican vs Democrat, it''s the taxpayer vs Washington DC.

[vastr-wcon]

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Another government bailout. Wall Street will, no doubt, continue its rally - investors can not loose with this government behavior.

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[omega39-2009]

I read a few months ago that the FDIC was bringing former employees out of retirement to help deal with what is coming. We have not seen the worst yet.

[marshall_nee]

FDIC Fridays, 5pm every Friday for the next year so. How many go? no one knows.

[buttonjockey]

1st National Bank of Nevada, First Heritage Bank, and now First Priority Bank.

Read the writing on the wall, folks! If your bank has the word "first" in it, move your money!