1st Bank Failure of 2015 – Feds Close First National Bank of Crestview, FL

The first banking failure of 2015 occurred in the state of Florida as the Office of the Comptroller of the Currency shut down the First National Bank of Crestview, Crestview, Florida.  The FDIC, appointed as receiver, sold the failed bank to First NBC Bank, New Orleans, Louisiana, which will assume all deposits of First National Bank of Crestview.
During 2014 only one bank failed in Florida when regulators closed the Valley Bank, Fort Lauderdale, FL, on June 20.  A total of 18 banks failed during 2014, the lowest number since 2007 when only three banks were closed.  The First National Bank of Crestview had been in operation since 1956.
All three branches of First National Bank of Crestview will reopen next Tuesday as branches of First NBC Bank.  All depositors of the failed bank will automatically become depositors of First NBC with uninterrupted FDIC insurance coverage up to the applicable insurance limits.
In addition to assuming all deposits, First NBC Bank agreed to acquire $62 million of performing loan assets and the investment securities portfolio of the failed bank as well as all three bank branches.  The FDIC will retain approximately $17.7 million of the failed bank’s assets for later disposition.  The FDIC attempts to sell the majority of a failed bank’s assets to the acquiring bank since it is the least costly method of resolving a failed bank.
Over the weekend depositors of First National Bank of Crestview can continue to access their money through the use of checks, ATMs, and debit cards.
First NBC Bank is owned by First NBC Bank Holding Company which operates as the holding company for First NBC Bank.  Prior to today’s acquisition First NBC had 32 banking offices  in New Orleans and along the Mississippi Gulf Coast.  After accounting for the purchase of First National Bank of Crestview, First NBC will have about $3 billion in assets.
First NBC Bank has had stunning success considering that it opened in 2006, just prior to the biggest banking crisis in US history.  Prior to today, First NBC Bank acquired one other failed bank in November 2011 when it took over Central Progressive Bank, Lacombe, LA, which had $383 million in assets.

As of September 30, 2014, the First National Bank of Crestview had total assets of $79.7 million and total deposits of $78.6 million.

The cost to the FDIC Deposit Insurance Fund for the failure of First National Bank of Crestview is $4.4 million