On Friday, OTS closed Key West Bank, headquartered in Key West, Florida, and the FDIC was named 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 Key West Bank.

As of December 31, 2009, McIntosh Commercial Bank had approximately $88 million in total assets and $67.7 million in total deposits. Centennial Bank paid the FDIC a premium of 0.50% to assume all of the deposits of Key West Bank, and agreed to purchase essentially all of the failed bank's assets. The FDIC and Centennial Bank entered into a loss-share transaction on $75.8 million of Key West Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $23.1 million. Key West Bank is the 39th FDIC-insured institution to fail in the nation this year, and the sixth in Florida.