On Friday, the Florida Office of Financial Regulation closed Horizon Bank, headquartered in Bradenton, Florida, and appointed the FDIC as receiver for the bank. As receiver, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, headquartered in Little Rock, Arkansas, to assume all of the deposits of Horizon Bank.
As of June 30, 2010, Horizon Bank had approximately $187.8 million in total assets and $164.6 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Horizon Bank, but did agree to purchase essentially all of the failed bank’s assets. Bank of the Ozarks entered into a loss-share transaction on $150.4 million of the failed bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $58.9 million. Horizon Bank is the 119th FDIC-insured institution to fail in the nation this year, and the fifth in Florida. This is the third failed bank acquisition by Bank of the Ozarks.