On Friday, the Florida Office of Financial Regulation closed Progress Bank of Florida, headquartered in Tampa, Florida, and appointed the FDIC as receiver. As receiver the FDIC entered into a purchase and assumption agreement with Bay Cities Bank, headquartered in Tampa, Florida, to assume all of the deposits of the failed bank.
As of June 30, 2010, Progress Bank of Florida had approximately $110.7 million in total assets and $101.3 million in total deposits. Bay Cities Bank did not pay the FDIC a premium for the deposits of Progress Bank of Florida, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Bay Cities Bank entered into a loss-share transaction on $82.6 million of Progress Bank of Florida's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $25.0 million. Progress Bank of Florida is the 134th FDIC-insured institution to fail in the nation this year, and the 27th in Florida.