On Friday, the Florida Office of Financial Regulation closed Wakulla Bank, headquartered in Crawfordville, Florida, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Centennial Bank, headquartered in Conway, Arkansas, to assume all of the deposits of the failed bank.
As of June 30, 2010, Wakulla Bank had approximately $424.1 million in total assets and $386.3 million in total deposits. Centennial Bank did not pay the FDIC a premium to assume all of the deposits of Wakulla Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Centennial Bank entered into a loss-share agreement on $212.7 million of Wakulla Bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $113.4 million. Wakulla Bank is the 128th FDIC-insured institution to fail in the nation this year, and the 25th in Florida. This is the third failed bank acquired by Centennial Bank.