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Commerce Bank of Southwest Florida shut down by regulators
Beijing News.Net
Friday 20th November, 2009
Commerce Bank of Southwest Florida, Fort Myers, Florida, was closed Friday by the Florida Office of Financial Regulation.
Commerce bank, headquartered at 1520 Royal Palm Square Boulevard, at Fort Myers operated under the slogan "smaller bank, bigger service." It was established on September 14 2005, and had been operating just over four years.
The Federal Deposit Insurance Corporation (FDIC) has been appointed as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Commerce Bank of Southwest Florida. Central Bank was founded in 1988 and has 17 branches in the Twin Cities metro area and Western Wisconsin.
The sole branch of Commerce Bank of Southwest Florida will reopen on Monday as a branch of Central Bank. The FDIC says depositors of Commerce Bank of Southwest Florida will automatically become depositors of Central Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until Central Bank can fully integrate the deposit records of Commerce Bank of Southwest Florida, an FDIC statement issued late Friday said.
Over the weekend, depositors of Commerce Bank of Southwest Florida can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of August 28, 2009, Commerce Bank of Southwest Florida had total assets of $79.7 million and total deposits of approximately $76.7 million. Central Bank did not pay a premium to assume all of the deposits of Commerce Bank of Southwest Florida. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets.
The FDIC and Central Bank entered into a loss-share transaction on approximately $61 million of Commerce Bank of Southwest Florida's assets. Central Bank will share in the losses on the asset pools covered under the loss-share agreement.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $23.6 million.
The Commerce Bank is the 124th bank to fail this year in the United States. It is the 12th Florida bank to close this year.  Email this story to a friend
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