On Friday, the OTS closed Peoples First Community Bank, headquartered in Panama City, Florida, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Hancock Bank, headquartered in Gulfport Mississippi, to assume all of the deposits of Peoples First Community Bank. Hancock Bank paid the FDIC a 1% premium for the deposits of Peoples First Community Bank.

As of September 30, 2009, Peoples First Community Bank had total assets of approximately $1.8 billion and total deposits of approximately $1.7 billion. Hancock Bank also agreed to purchase approximately $1.6 billion of the assets of the failed bank. The FDIC and Hancock Bank entered into a loss-share transaction on approximately $1.4 billion of Peoples First Community Bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $556.7 million. Peoples First Community Bank is the 135th bank to fail in the nation this year and the 14th in Florida