Another Weekend Arrives, Another Bank Failure: First Priority Bank Goes Down
August 2nd, 2008Via: Los Angeles Times:
We all can start getting used to this: Friday is going to be Bank Failure Day in the U.S.A.
The Federal Deposit Insurance Corp. said late today that it took control of First Priority Bank of Bradenton, Fla., marking the eighth bank failure this year — and the fourth just since July 11, when the feds seized IndyMac Bank of Pasadena.
First Priority had assets of $259 million and deposits of $227 million. And in a sign that the high-profile failure of IndyMac still hasn’t persuaded all bank depositors to keep their accounts within FDIC insurance limits, the agency estimated that First Priority had about $13 million in uninsured deposits.
SunTrust Banks Inc. of Atlanta agreed to buy First Priority’s insured deposits and to take over the bank’s six branches. But the uninsured depositors, as in IndyMac’s case, will be paid 50% of those balances upfront and then will have to wait to see what the FDIC gets as it liquidates First Priority’s assets.
The FDIC prefers to close or sell insolvent banks on Fridays and reopen them on Mondays under government control or under a new owner.
