Florida bank shut down by regulators

PressTV - Florida bank shut down by regulators

Regulators have shut down Coastal Bank of Coca Beach in Florida, raising the number of US bank closures to 40 in 2011 amid rising concerns over the economic crisis.

The Premier American Bank, National Association in Miami has struck a deal with the Federal Deposit Insurance Corporation (FDIC) to acquire Coastal Bank's two branches, The Miami Herald reported.

The FDIC, appointed by the Office of Thrift Supervision as receiver, has estimated the amount for the acquisition will cost USD 13.4 million.

Coastal Bank held approximately USD 129.4 million in total assets and USD 123.9 million in total deposits before its failure. The two branches will reopen on Monday as branches of Florida Community Bank, a division of Premier American Bank.

This is the fifth bank in Florida to fail this year. Last week, the Cortez Community Bank of Brooksville and First National Bank of Central Florida in Winter Park were closed by regulators and bought by Premier American Bank.

Meanwhile, The National Credit Union Administration has taken two federal credit unions -- the Hmong American Federal Credit Union of Saint Paul, Minnesota and Valued Members Federal Credit Union of Jackson, Mississippi -- into conservatorship on May 4.

So far in 2011, 40 banks and 11 credit unions have either closed, acquired or placed into conservatorship.

In 2010,157 banks and 24 credit unions failed, whereas the number was as low as 140 in 2009. The failures come despite the Federal Reserve's two rounds of asset purchases totaling USD 2.3 trillion.

Some reports say more than 10 percent of the United State's 7,760 banks are in financial trouble.