On Friday, the Florida Office of Financial Regulation closed Sun American Bank, headquartered in Boca Raton, Florida, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, headquartered in Raleigh, North Carolina, to assume all of the deposits Sun American Bank. This is the third failed bank acquired by First Citizens in the past year.
As of December 31, 2009, Sun American Bank had approximately $535.7 million in total assets and $443.5 million in total deposits. First-Citizens Bank & Trust Company did not pay a premium to acquire the deposits of Sun American Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and First-Citizens Bank & Trust Company entered into a loss-share transaction on $433 million of Sun American Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $103.8 million. Sun American Bank is the 23rd FDIC-insured institution to fail in the nation this year, and the fourth in Florida.